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Anytime you want to make money! In all honesty, money can be made year round in the market; especially if you can play both long and short in the market.
However, below we will address some of the best times to be in the market. We will take a look at some of his most prominent quotes about investing in the stock market.
“If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”
“If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”
Truth be told, consider the stocks you are purchasing and whether those stocks are something worth holding for the long run. Beyond the benefit of paying lower taxes on long term capital gains (stocks held longer than a year, most dividends), you may reap the benefits of holding onto a company that could revolutionize our way of living and could return your money 10 fold. Imagine buying companies like
Apple (AAPL) under a $1 in 2005 to $200 by 2023
Microsoft (MSFT) at $30/share in 2010 (housing/mortgage crisis) to $375/share in 2023
On the contrary, buying into companies like Gamestop (GME) during the hype back in 2021 led to some becoming millionaires, while some lost everything, and others are hoping and wishing it makes a come back. Let's be honest, have you every been to a Dollar General Store? What do you expect them to do that you want to invest in them?
"It's far better to buy a wonderful company at a fair price, than a fair company at a wonderful price."
"It's far better to buy a wonderful company at a fair price, than a fair company at a wonderful price."
To quote the Notorious BIG, "There's rules to this s*** I wrote me a manual." While I do not believe in catching falling knives, I am opportunistic in looking for value in companies. When prices fall, I am looking at good companies to be the first to turn around in the market. When they start to turn I want in fast.
Buying XOM (oil) in 2020 during the pandemic at $30, then quadrupling it in 3 years
Buying the NVDA dip in early 2023 at $150/share to watch it rise to $500 by years end 333% gain
This chart, weekly candles, represents Lucid (luxury electric vehicles). At one point they were all the craze and everyone kept buying into the company that did not even produce a single car. While they have begun deliveries of cars, they are far cry from being the next TSLA.
"Be fearful when others are greedy. Be greedy when others are fearful.”
"Be fearful when others are greedy. Be greedy when others are fearful.”
In the chart above, we see that the S&P 500 and how different months often produce different returns on average.
No guarantees that historical data will produce future gains
April, July, and December have the largest rates of return
However, to catch these gains, you will need to invest in the previous months to get the full impact
February, May, and September should be months we look for opportunity to enter into long positions
Read this article on historical returns (Best Months for Stock Market Gains)
In the chart below, you can see how it can also be favorable to invest after negative years in the market as the market rallies at an exponential rate over the next years.
"Our favorite holding period is forever"
"Our favorite holding period is forever"
Consider other trading styles
Dividend stocks - take profits to invest in other holdings or other assets
Dollar Cost Averaging - think about your ROTH/Traditional IRA that you purchase every month
Buying and holding innovative companies that are the leaders in their industry, show potential for growth, have multiple revenue sources.
Taking a look at S&P 500
We can see how investing in 2015 in S&P 500 (Year Open - $2,058.20) would have yielded excellent returns to over time by just holding on through the years (2023 Year Close - $4,754.63).
We can also see how buying and holding each year has produced returns in 7/10 years
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