The Best Time to Invest
Investing in equities only makes sense if one is an optimist. If you feel pessimistic about the future growth of the world economy then you probably wouldn’t want to be a business owner (i.e. invested in equities) because the growth prospects of businesses would likely be poor in an under performing economy. But if you believe, as we do, in the relentless march forward of the human spirit and its’ achievements, including the recent advancements in technology, then the only world view that fits is the view through the sights of optimism.
We live in very exciting times. Our life expectancy will likely jump dramatically with recent and future biotechnology discoveries. Fuel cell technology will soon replace the internal combustion engine. The internet is changing the way we live and communicate. Demographic trends, along with the globalization of democracy and free enterprise, should propel the markets higher for the next decade. Of course there will always be corrections as the markets get ahead of themselves (i.e. the prices bid too high). There will always be the nay sayers (the pessimists) and the media (negative news always sells) warning of the end the world or the next major crisis. Our advice - turn off the news, look at the historical trends, and stay invested.
When is the best time to invest? According to Sir John Templeton, the now retired founder of Templeton Mutual Funds, the best time to invest is when you have the money! If you wait until tomorrow, there’s about a 75% chance that the market will be higher and it will cost you more. Who doesn’t wish they had invested 10, 15, or 20 years ago? Yes, we wholeheartedly agree, it’s time in the markets, not timing the markets, that will bring long term investment success.