Is Now a Good Time to Invest?

As I write this, the stock market is in the midst of a difficult period as uncertainty is rampant with President Trump’s implementation of tariffs, fear among investors that the market is overvalued, concerns that the hype surrounding artificial intelligence (AI) is overblown, questions on if inflation is under control, and data suggesting that the US economy might be slowing down.  A bleak picture indeed.

Add it all up, and it's enough to make anyone hesitant to put their hard-earned money into the market.

Can You Time the Market? Really?

Before you decide to sit on the sidelines, ask yourself this: Are you a market timer? And I don’t mean, "Do you think you can time the market?" I mean, do you have a proven track record, backed by data, of consistently buying low and selling high?

Be honest with yourself. Because the truth is, very few people – even professionals – can consistently and accurately predict market movements. If you are capable of this, I am very curious to learn more about your methodologies.

The Power of Consistency: Dollar-Cost Averaging

So, what's the average person to do in the face of all this uncertainty? One of the most effective strategies, in my experience, is dollar-cost averaging.

Here's how it works: Instead of trying to time the market by investing a lump sum at what you think is the perfect moment, you invest a fixed amount of money at regular intervals – say, $500 every month, regardless of what the market is doing.

• When prices are high: You buy fewer shares.

• When prices are low: You buy more shares.

Over time, this strategy can smooth out your average purchase price and reduce the risk of buying in at a market peak. It’s a simple, disciplined approach that takes the emotion and guesswork out of investing. Dollar cost averaging will keep you invested and, therefore, will allow you to enjoy the market gains that result over time.

Still Unsure? Let's Chat.

I know navigating the financial world can be overwhelming. If you're feeling lost, confused, or simply want a second opinion, I'm here to help. I offer personalized financial coaching to help you develop a strategy that aligns with your goals, risk tolerance, and time horizon. I can help you determine if you are taking too much or too little risk.

Reach out to me for a free introductory call. Let's discuss your situation and see if I can help you make more conscious decisions with your money.