One of the most asked questions I get is, ‘When should I start investing?’ The implication is that now is not a good time. Either the market is too high after the recent run up, or the market is too scary after the recent declines. There are always reasons for not investing today. What’s the secret to picking the right time to start investing?
If you are a trader, peaks and troughs are very important. You want to sell at the peak and buy back into the market at the bottom and wait for the next peak. The problem is peaks and troughs are much easier to identify in hindsight. An alternative to this market timing approach is a long-term buy-and-hold strategy that focus on dividend growth stocks selected using a value oriented approach.