Should You Always Be Buying Stock?
As an investor, one question I'm often asked is "when is the right time to buy stocks?" It's a fair question, and one that doesn't have a one-size-fits-all answer. But here's what I can tell you: in my experience, there's always a good reason to be buying stocks.
Now, I'm not saying you should blindly throw your money into the stock market without a thought. Far from it. Investing in stocks requires careful consideration, due diligence, and a long-term perspective. But if you approach it with a disciplined, strategic mindset, consistently buying stocks over time can be a powerful way to grow your wealth and achieve your financial goals.
In this post, I'll explain why I believe you should always be buying stocks, and offer some practical tips for doing so in a way that aligns with your investment objectives and risk tolerance.
So, why should you always be buying stocks? There are a few key reasons:
Stocks have the potential for long-term growth: Over the long run, stocks have shown the potential to outperformed other asset classes such as bonds and cash. While there will be ups and downs along the way, the historical track record of stocks suggests that they can provide a higher rate of return over time. This makes them an attractive option for those looking to grow their wealth and achieve their financial goals.
Dollar-cost averaging can help reduce risk: One way to approach stock investing is through a strategy called dollar-cost averaging. This involves consistently buying a fixed dollar amount of a particular stock or index fund at regular intervals, regardless of the price. By doing this, you're able to smooth out the ups and downs of the market and reduce your risk of buying at the top of a market cycle.
Diversification can help mitigate risk: Another way to reduce risk in your stock portfolio is through diversification. This involves owning a mix of different stocks and asset classes, rather than putting all your eggs in one basket. Diversification can help mitigate the impact of any one stock or sector underperforming and can improve your chances of achieving your investment objectives over the long run.
While there's no guarantee that stocks will always go up, consistently buying them over time can be a powerful way to grow your wealth and achieve your financial goals. By approaching stock investing with a disciplined, strategic mindset, and using strategies like dollar-cost averaging and diversification, you can mitigate risk and increase your chances of success. So, don't be afraid to keep buying stocks – it may be one of the best decisions you make for your financial future.
The commentary on this website reflects the personal opinions, viewpoints and analyses of the Ascend Investment Partners employees providing such comments, and should not be regarded as a description of advisory services provided by Kesler, Norman & Wride, LLC dba Ascend Investment Partners or performance returns of any Ascend Investment Partners Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Ascend Investment Partners manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.
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