The returns on stock investment may not be assured at present

Stock Market Investments

Stock Market performance has met various highs and lows in the recent past. Sometimes when things look quite stable, they take a toll and turn around giving a bad news to the investors. There are times when they don’t seem to be comfortable enough, they are quite profitable. Amid all this, it gets a difficult task for the investor to decide when to enter the market and when to refrain.

Why should investors refrain from making stock market investments now?

When experts, evaluate the growth of the stock market, they realize that the same has gone down by 25% since 2008. In fact, Canadian stock market has slid this much, but USA stock market has slid by 10% only in the given period.

This is a clear indicator of the fact that the revival process has been fast by the US companies than it has been for the companies in Canada.

Is stock market performance is the barrier of economic stability?

Though some will give an answer in “yes” but, most will vote a “No” for it. With experience one must have realized that even with an underperforming economy, stock markets have given good results and yields to the investors.

On contrary, a good economic state could also not pull up the performance of stock market and hence contributing in no way to a great performance of the same.

Should investments be made now?

The stock prices are quite low at this point of time, yet, many experts suggest not entering the market aggressively right now. The suggestion is to observe it as a buying opportunity but with a conservative approach. Five years later one may think of this period to be a “buying opportunity period” but there is only a speculation and not a shirty.

The history also reveals that in 1929, when the stock markets had crashed, it could return back to the same highs only in 1954.

Hence, if one can wait for a similar period of time length, one can always invest right now. Else, there is no harm in being observant and watchful. Invest in small amounts and not in an aggressive form.

Investments are a matter of personal judgement and the study one makes over time. Hence, combine all the tricks to get a good return of your money.