Should You Really Be Buying Stocks Right Now?
It's official... again. We're back in bear market territory. Thanks to last week's rout, the S&P 500 (SNPINDEX: ^GSPC) now sits a little more than 23% below its late-December peak. The Dow Jones Industrial Average (DJINDICES: ^DJI) is now down 20% from its early January high, reaching new lows for the year on Friday. The Nasdaq Composite (NASDAQINDEX: ^IXIC) isn't faring any better. And almost everyone senses lower lows aren't a distinct possibility now that the sell-off has gained some momentum. In short, it's difficult to even think about being a buyer here, as it's tantamount to catching a falling knife. If your timing is perfect, it's a clever trick. If your timing is off, it could hurt -- a lot.
The thing is, this is exactly when you should be buying stocks, even knowing we may not have reached the ultimate bottom just yet.
It's an admittedly tough idea to digest at this time. The market's tanking, interest rates are rising, and little seems to be curbing rampant inflation. In short, the foreseeable future looks grim.
Source Fool.com
