Revisiting my first post: Is it a good time to invest now?

source: http://www.stockginger.com

It is worth reading an old post. 

Back then the situation is pretty much similar that is we are in the middle of a financial crisis. (Click here to read my very first post. Please leave your comments on how different is today's crisis from the last). My question was "Why invest?"

Now this is my question: Is it a good time to invest now?

Yup the stock market had a roller coaster ride. The Philippine Stock Market reached its highest two or three times before it succumb to its current level due to US debt crisis. You might wonder why am I asking if it is the right time to invest. Well as I recall again there is no right time to invest because "now" is the right time to invest. But it is so scary out there don't you think. The DOW dive nearly 600 points down then recovered back then went down again, it is so risky and still why do I say it is a good time to invest now.

source: http://www.bloomberg.com/apps/quote?ticker=INDU:IND

Now probably you have to ask me direct, Louis why is it a good time to invest now?

Here are my reasons:

1. Stock prices of blue chips companies went down therefore you

    are getting them at a bargain.

2. The current financial crisis is of the US not of the world yet. So it

   may have affected other markets but surely it is temporary as it

   has always been. So take advantage of the time.

3. Stocks of true value will come out in such situations. Those who

   are really just mere stocks will fall but those who truly deliver 

   profitability amidst crisis will stand out.

4. If you already have stocks it is a good time for you to average

    down big time. 

So what is your move now? Probably you might say you'll think about it. And that is good as well. In stock investing you always have the final word. No one can tell you what to do but only you as an investor have to push that buy button or if you prefer to sell then sell button.

source: http://iamamentallychallengedteen.blogspot.com

So is it really a good time to invest now? Would appreciate sharing your thoughts by leaving comments below.

How is your portfolio today? A lesson from the movie Battle Los Angeles

source:http://www.bdinn.com

Probably you are still in shock.

The stock market is now officially in the Ghost month and at the same time the recent adjustment of the US Debt Ceiling that led to the USA's downgrade of credit rating drove most markets in the red. 

Maybe you are one of the newbie investors who just recently got into the stock market after long hours or days or even weeks of thinking and deciding if you will put money in the stock. Well you were happy weeks ago because all your first stock picks went green and then this week all are in the red; some would say bloodbath.

Do you remember the 7 rules of stock investing? If not click here to read it.

Always remember to only invest free cash for a very practical reason and with this always remember to trade at your own risk. Also always set aside emergency fund for your personal use and for bargain hunting. Right now is the best time for bargain hunting. Stocks with strong fundamentals will stand the test of time and will soon rebound thus buying them at a low price at this time will be a wise move.

source: http://www.megavideomoviesonline.org

But if you have bought your stocks and still their prices went down don't be too hard on yourself. Have you watch the movie Battle Los Angeles? There is a line I love the most. SSgt Nantz  keep on saying it. 

“You can go left, you can go right, I don’t give a damn.  Just make a decision.”

source: http://moviecarpet.com

It does not mean an aimless move in the spur of the moment but rather it is a call to action. Right now you can either back out and pull out your cash and lose or be patient and keep on cost averaging or investing in better stocks. It is like we are in the middle of the war; a war were you can be dead or a alive and you need to make a decision. 

Most analyst say the situation will be lingering for months. They are seeing it more or less six months. So what will you do? If you have not been following the rules you might be forced to cash out but if you have set aside money for this situation then you are lucky and if you haven't but you can still hold on to your investments who knows the situation might reverse soon and your portfolio might be able to regain its value and end up at a big profit.

Patience is a virtue.