Is this the best time to buy stocks? In this tumultuous time of lockdowns, face masks, stimulus checks and unemployment, a lot of people have been paying closer attention to the stock market which has actually had a pretty interesting reaction to all this. Not only are people looking to take advantage of the fast gains, buying opportunities and volatility in the market, but there's a lot of people who still have money, not many places to spend it, have a lot more time on their hands and have just received a $1,200 stimulus check. A lot of people are wondering if NOW is the time to start investing, wait or further increase and already established portfolio. This video will go over weather or not right now is the right time to start investing in the market, which types of companies and sectors to avoid and what will happen next with our economy.
First up, is now a good time to buy? ... Yes. Will you probably get a better buying opportunity at some point in the short term? Probably. If you invest in good companies with a solid future, you'll definitely make money. You may or may not be hit with a market correction in the short term (which you can completely take advantage of) as long as it's a good company, you've done research and the analysts agree with you, you'll make money and the long term and could even enjoy quick gains in the short term. Even though there is still a lot of market uncertainty and a correction or even another crash is expected, their are still factors that could drive prices significantly, higher, the main one being a lot of new money in the market, which could be a good thing or a bad thing. Many people are just popping their stimulus Czech right into the market along with the many people who haven't lost their jobs & income and have less places to spend money. The instant effect of this is obviously higher stock prices but it can also have the opposite effect when a correction comes and new investors see their positions declining, their response might be to panic and sell causing deeper crashes. You're also going to see the transfer of business out of some companies and into others.
Which companies to avoid and which ones have a future: Liked mentioned in the video, it's important to know, there are many companies that won't survive this and many of these companies are listed on the New York Stock Exchange... or any exchange in the world. There's currently a lot of interest in some of the sectors hardest hit like airlines, cruise lines. travel retail. This definitely might be good for long term in most cases and even good for short term for those who want to take advantage of this sudden pop in interest. But airlines are expensive to run and a lot of them have struggled even when there's not a problem with the economy. Even though the government has allocated money to help with this, there's a lot of companies in the travel sector that have already taken a huge hit, and now going forward, at least in the short term, they will be seeing a huge drop in customers. So in many and probably even most cases, buying one of these tumbled travel stocks will be good for the long term, many people will find themselves stuck in a stock that turns into complete and utter dawg popo. Dookie. Me no likey. There's a lot of factors like the company just simply running out of money to stay open when there's no business but there's also bigger businesses that will take advantage of this oppertunity to do what the small busniesses do but better and more efficient.
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