People have been complaining that we are in a bad economy and that we are all going to be in another great depression for years now. It can seem that way. If you look at how the stock market has performed since 2008 it can be daunting.
However there is another side to this.Historically bear markets have offered the best time to get into stocks.There are plenty of reasons to start buying stocks while they are cheap.
1. Long Term
Over the long term stocks go up. If you look at a long term graph of the S&P or Dow Jones you will see that the market does have its ups and downs.Today we call these ups and downs bull markets and bear markets. But over the long term stocks do head up.
So, simply holding onto stocks over the long term has been a profitable thing to do.
2. Best Time to Buy
Historically the best time to buy stocks has been when they are down.Since stocks go up and down wouldn’t it make sense that the best time to buy is when stocks are down? Yes this way you get in at the best possible price. Buy low sell high is one of the biggest stock tips around.Well the stock market is still at a low level.
Obviously buying at the bottom was a smart move in the past and still is today. But it is still a good opportunity to invest your money today.The markets are still down and everyone thinks the end is coming, throughout history when most people believe those two things that has been the best time to buy.
3. Dividends
Another reason to invest is because of dividend stocks. When the economy starts to recover and companies start to make more money they may also start to pay higher dividends meaning more profits.
The bottom line is this, a bulls market is come and it will be big.So, why not start preparing for that bulls market instead of just running around in circles panicing and worrying that the “world is ending”? Do you think the successful people in the past worryed about this, or do you think they took action?