Is there an ideal time to enter the stock market and buy shares? This is a question that concerns many investors – especially when it comes to investing assets in such a way that you can live off them. One thing is certain: cash does not yield a return. But when is it worth investing in shares?
The answer to this question is basically very simple: the best time to invest is always now. Because there is no interest in the bank and your assets are constantly losing value due to inflation.
Point Capital is your reliable investment partner. You can benefit from our outstanding expertise and invest your money profitably with us.
Planning the purchase of shares: is there a strategy?
When buying shares, it is crucial to follow a clear strategy to minimize risk and maximize the potential for long-term returns. A well thought out investment strategy helps investors navigate the complex markets and achieve their financial goals.
Is there an ideal time to buy shares?
Of course, everyone would like to get in at the lowest price of a share and sell at the highest in order to achieve the highest possible profits.
However, equity investors must bear the following in mind: The highest returns are achieved by those who invest their money for the long term – with a time horizon of ten years or more. And for long-term investments, the time of entry is less important.
So now is a good time to buy shares on the stock market. If you wait, you will miss out on good investment opportunities. Worse still, your money will lose value – inflation will slowly but surely eat away at the value of your assets. And other investments, such as bonds, will not generate attractive returns in the long term either.
Of course, this does not mean that you should invest blindly in shares. It is crucial that the investment strategy matches your personal return and security requirements. In addition, you should not invest all your money at once, but in tranches. The following applies: Anyone who tries to optimize returns through market timing is ill-advised. The market is far too complex for that.
Successful investors build their investment strategy on a thorough analysis of trends, markets, sectors and companies and take a long-term approach. In our guide, we have compiled the most important findings for stock selection for you.
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Aktienanlage: mit der richtigen Strategie zur attraktiven Rendite
- welche Kriterien wichtig sind bei der Aktienauswahl.
- was es mit dem Streit 'Growth' versus 'Value' auf sich hat.
- warum eine strukturierte Anlagestrategie unverzichtbar ist, um an der Börse erfolgreich zu sein.
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Especially in times of high volatility and/or an uncertain political situation, it is difficult or even impossible for many investors to maintain an overview. However, it is important to note that investing in shares is not about catching the optimum moment. Rather, it is about investing your money in the first place, diversifying the risk and taking a long-term view. Because, as already mentioned, it is not possible to predict the market perfectly and the risk of a temporary loss is always present.
How can I as an investor reduce the risk when buying shares?
There are various tips you can use to reduce the risks involved in buying shares. Point Capital shows you how you can reduce risks when buying shares.
Diversify investments
A broad diversification of your portfolio is essential if you want to reduce risks. Instead of investing all your money in one stock or industry (sector), as an investor you should spread your money across a variety of companies and industries. This reduces your financial risk if a company or sector gets into difficulties and at the same time increases the chance of more stable returns.
Consider your own financial situation
Another important factor in deciding when to buy shares is your own financial situation. Before investing in shares, you should have sufficient financial reserves to be able to pay for any unforeseen expenses. So ask yourself the following questions before investing in order to be able to assess your financial situation properly:
- How much money do I want to invest and can I sleep soundly with it?
- Do I have enough reserves for emergencies and unexpected expenses?
- What are my long-term financial goals?
In this way, you avoid having to sell your equity investments at the worst possible time. The long-term investment horizon is the key to success and makes the question of the best time to enter the stock market superfluous. As an investor, you should not pay too much attention to short-term market fluctuations, but rather pursue your investment goals over the long term. This will help you to stay on the ball even in difficult times and build up your assets sustainably over the long term, for example for your retirement provision.
Invest your money actively and don’t just leave it in a savings account at the bank. Otherwise you won’t achieve a return – not even in the long term.
Not an ideal time to buy shares
In summary, it is impossible to say exactly when shares should be bought. There is no ideal
Instead of focusing on market timing, as an investor you should focus on the fundamentals of investing and ensure that your investments match your personal financial goals.
We will be happy to help you find a suitable investment strategy that is tailored to your needs.
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