The Bottom: When is the Right Time to Buy Stocks?

I’ve been asked lately: “Evan, where do you think the bottom is and when should I start buying into this market?”

Here are some charts of previous bear markets. I’ve circled the bottoms in red.

Not every bear market is created equal and they all look very different. It is evident in these charts that we never know when the bottom is and how quickly they move back up. It is evident from history that buying when the markets sell off 30% or more tend to be a good time to at least start allocating cash reserves in. 

If you’ve been sitting in cash and want to buy, but are worried that stocks will go lower, then break up your purchases.  It is hard to take emotions out of your decisions and that is exactly why I am here to help you with that allocation plan. Come up with a concrete dollar cost average plan and commit to it.

 All bear markets come to an end. Just a matter of time. I don’t think this is the great depression 2.0. Take a look at the chart below. This drop looks a lot more like 1987 than 1929. Only time will tell. 

 Our country has experienced World Wars, inflation, deflation, stagflation, financial panics, and everything in between that drive down markets. We have come out of all of these events stronger than ever, and we will do so during this time.  It’s going to hurt like hell for some of you, but we’ll pull through this.

Everybody who has ever invested during our darkest days has ultimately been rewarded. There’s no reason to think this time is different.

Stay safe and have a great weekend!