Time to Invest!

Time+to+Invest%21

QuoteInspector.com

Carlie Clements, Staff Writer

While the immediate future may be a bit unsure, you could make the posterior future a bit more profitable now.

Now maybe the best time for young investors to invest in the stock market.

Since the COVID-19 pandemic began in March, life went from completely normal to complete change. As stay at home orders begin to be lifted stock prices have begun to rise again but are still low.

Beginning in mid-March prices began to rise again with the Standard & Poor’s 500-stock index closing 13 percent up for the week of 4/10/2020, which is a reliable indicator of future performance for America’s largest companies.

The market continues to gain strength once again but on May 1,  we still saw low numbers.

“The Dow Jones Industrial Average declined by more than 622 points, the S&P 500 by more than 81 points, and the Nasdaq composite index by more than 284 points,” said themarketplace.com 

These low reports lead to the realization that this may be the best time for young investors to take their part in the stock market.

Things that need to be taken into account when investing are that you have a secure job, money saved, and the ability to lose money, which is not a problem for young investors. Even though many have jobs, the majority of teenagers do not rely on their income to sustain everyday life.

Not to mention that you will not have to spend nearly as much to invest at this time.

As of 4/17/2020, stock prices were down 20% from that of stock prices in March.

Since it has been established that during this time investing would be a great choice, there is also when during this time to invest to consider.

Some believe that a certain time of day and day of the week play a role in getting the best deals out of the stock market exchange. 

“The closest thing to a hard and fast rule is that the first and last hour of a trading day is the busiest, offering the most opportunities while the middle of the day tends to be the calmest and stable period of most trading days,” said Investopedia, “that first 15 minutes following the opening bell is prime time, usually offering some of the biggest trades of the day on the initial trends. The whole 9:30–10:30 a.m. ET period is often one of the best hours of the day for day trading.”

Which day of the week you invest can also be said to be a contributor to the price of stocks.

“For decades, the stock market has tended to drop on Mondays, on average… this is called the Monday Effect,” said the Investopedia writer.

To get started you can use low-cost online services.

Things such as online advisors can help you figure out how to diversify your money, or if you are confident with investing an online broker will allow you to make these decisions on your own.

Websites such as Betterment and Ally Invest are examples of these helpful tools.

Now is the best time for the long term investor to invest because investing in the market now while it is lower is the only way to raise the dollar cost in the future when you start selling your stocks.

While on Friday 5/8/2020 stock market was up 455 points when closing, there still is time to get your hands on lower stock market rates.

So to keep the market going and to make a little money down the road, now is a great time for young people to invest.