Is it the right time to invest?
No too long ago we were talking about the recession and how bad it could affect us. Many of us lost our jobs and security and the numbers are even worst in the developed countries like the US. That is why we need to be ready for a major economic downturn like what we are having now.
When there is a downturn, there must be an upturn and likewise we should be ready for the economic upturn if we don’t want to be the one who is left without the chair when the music stop. Now everyone knows that. The big question is is it the right time now. No one in this planet can tell when is the time, but history does shows that economic recovery should come very soon. With a lot of measures and recovery plans by governments all around the world, there is no reason we can think that the recovery is not coming any soon that we want it to be. After all we sure will not let anything worse than the current state that we are having now.
If we have taken enough steps before the crisis or during the crisis, now it’t time to use the crisis to invest again. Normally that is what people do and we should do it now. We are in the second year of recession and things should be getting to normal on the third year, but when it comes to the third year, we are not able to invest at a low price.
What to invest? Properties of course. Houses and apartment are cheapers now as demand dropped and bank loans are cheaper too. It is now the time to collect some good properties and when things recover, people start to buy properties and we are in a good position to sell those we have.
Unit trust is the next best thing to buy after properties. Dow Jones have dropped to some 50% of its highest value and so are the rest of the world market. Investing in unit trust are much cheaper and safer way to invest and our investment are are spread out to a wide selection of funds and markets. Todays market are very wide and investors are able to invest throughout the world with the existence of many reliable unit trust companies nowadays.
Investing in equity or unit trust is more for a mid to long term to see the return of our investment. During the China boom in 2007, many investors are making fortune in China’s market and investors are coming from Japan and Asia countries to invest in Hong Kong and China.
We don’t want to wait for the Dow to reach the 10,000 level to enter the market, but we should enter and get some nice portfolio when it is still at the lower bottom of 8000 or below. By year end it may reach 10,000 where we can have a good return and by 2-3 years time, it may reach the 15,000 level where our investment could be double the value. And it is the same for other markets too.
So once again, it is the right time to invest, my best answer is yes.