Men who can both be right and sit tight are uncommon. -Jesse Lauriston Livermore
Can you make money by investing during a bull market? Yes, of course, you can provided your investment horizon is long term ( at least 3-5 years) and you do not invest in individual stocks.
Warren Buffett once said ” I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.”
Yes, you can make money anytime in the market even during a bull market if you hold your portfolio for at least 5-10 years, and please buy ETFs ( exchange-traded funds) rather than individual stocks if you want to sleep well at night.
You have to make up your mind
While I was talking about buying ETFs ( VUSD and VWRD) a few months ago, readers emailed me and told me they were not ready because they were expecting a big crash soon, they preferred the ‘wait-and-see’ strategy.
When I am writing this, both S&P500 and Dow Jones have reached their historical highs recently. Some readers might think since it is a bull run now, it will be a good idea to wait for a few months again.
You have to make up your mind! If you have decided to invest for the long term, start investing your money today and not tomorrow because the market is going to inch higher in long term.
Make up your mind, are you an investor or a speculator? If you are a long term investor, anytime is a good time to buy! You can’t time the market. Not point timing the market. No one in this world can time the market.
No point timing the market
Market predictions are just financial news circus. Making one correct market prediction correctly immediately puts you in the spotlight of all the financial channels in the world. Economists and financial analysts make their names known by timing the market correctly.
Ignore the noises, switch off your TV and throw away your financial newspaper, you will be a better investor by just staying on course.
Be patient
“The big money is not in the buying or selling but in the waiting.”
Charlie Munger
No point looking how the market moves in hours, days, months or even 1-2 years. Look at the bigger picture and soon you will realize stock market is the easiest and biggest wealth making machine in the world!
If you step back and look at the bigger picture, see the chart above, the stock market always goes up. If you look at a smaller picture, you see volatility and inconsistency. In life, it might be a wise move just sit tight and step backward, you might be surprised what you can see!
Just be patient, money is being made in the stock market not by selling and buying, big money is being made by waiting patiently.
Let compound interest works wonder, buy now and consistently and ignore the ups and downs of the market, wait for 5-10 years, when you look back, you would realize you make the correct decision to buy now and wait!
It is a bull market now
Yes, it is a bull market now but a bigger bull is coming in the next 5 to 10 years. The price is at a historical high but businesses are created in a way that they are going to expand bigger if the world population keeps on growing.
If you buy ETFs, there is no bad time to buy, you just need to buy regularly and build up the egg nest. Buy today and don’t wait until tomorrow even you think the price is high today because, after 5-10 years, the price of your ETFs will go up even higher!
Conclusion
“Whatever you are waiting for won’t come to you; you have to go for it.”
Israelmore Ayivor
Mac Duke once said “I’ll do it later”, is where you bury your dreams. Don’t delay your action once you have made up your mind. Life won’t wait for you. Take action today and not tomorrow or later.
As long as you invest in ETFs and hold them for the long term, you are in safe hands! Just be patient, you will be rewarded after 5-10 years.
