“When is the best time to put money into markets?” This question bothers every equity investor no end. But what every equity investor must ask himself is, “When it’s the best time, did I put my money in markets?”.
Most investors never invest when it is the best time. And, when markets rise, they maintain their hesitation. But there always is a better way of doing it. Invest in parts of the market where others refuse to buy. Find opportunities that others fail to see. Scale up your bets sensibly. Keep investing regularly. Buy aggressively as you find stock valuations more in the attractive zone. Buy as much as you can when markets see too much fear, even if it is just 10-20% of your portfolio.
A progression like what is described above works very well in every market situation. All an investor needs to do is be well advised, stay amply liquid, invest steadily, and buy into fear for as much as he can. The outcome of such a progressive strategy will be way superior to what investors who wait for the perfect moment achieve.
For one thing, a progressive investor would never have missed the perfect moment. The perfectionist investor almost inevitably misses it. So the choice is simple. Stay the course and move your money around sensibly. Ensure that you participate adequately in every market cycle.
