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  • Writer's pictureNate Baim, MBA, CFP®

Is Now the Time to Invest in the Markets?

Video Transcript:

Is now a good time to invest into the markets?

This is a question I have been receiving from a lot of clients lately. And the answer really depends on their unique circumstance. If your are somebody who is thinking about investing into the market right now, l encourage you to take a series of steps in order to figure out if now's a good time for you to invest in the market. Markets have been very volatile, and it's likely that volatility is going continue in the foreseeable future. And so, I would encourage folks to do is first sit back and take stock, what do you have, what do you owe, and what is your current income? Understanding these three key parts help you understand if you have the capacity to take the risk. It is important that you have 3 to 6 months of emergency fund that will cover your essential living expenses, and also that you expect for income remain fairly stable in the coming months. And also the you don't have any significant amount of high interest rate debt. So like credit card debts or the like. Next you want to check to see if you are OK with putting your money into the market right now. If you put your money, are you gonna be tempted to take out if the market were to fall another 30%. You know the market is currently down around 25 to 30% and depending on when you're watching this, it may be more or maybe less when you watch this, from its recent peak. But when we look back to the financial crisis of 2009 and 2008, the markets fell nearly 50% from their high. And so that helps us understand that the market can still go down. And there is a lot of uncertainty still. We don't know how we're going to respond to this crisis. As far as like government policies that are going to be in place and how markets can react to those policies. We also don't know how the virus itself is gonna change on the ground and how the situation with combating virus is going to change. Those both lend to a situation where this going to likely be continued volatility. And then the next thing I would ask folks to look at what are your goals. If you have a portion of cash on the sidelines right now, and you're saving that for specific purpose, you are saving it for a down payment on a home or starting a family and all of this things are going to be happening within the next five or seven years, I would really consider carefully about putting that money into the market. Especially if it's a high value goal. Because the reality is it could go down and we don't want to put a lot of stress on you achieving that goal. Now once you've answered those questions you understand how much risk you can tolerate, how much risk you can afford to take, and whether or not you even need to take the risk, you need to begin to answer, if you do decide to invest, how to invest. Is it going to be all in stocks; is it going to be in a portion of stocks and bonds? Is it going to be mostly U.S. equities or is going to be a combination of U.S. and overseas? All of these are important questions in order to figure out once you have decided it is a good time for you to invest, how to invest. Because that can also have a big impact on your plan and goals. So the key lesson is that as financial planners, as investors, we are always looking to manage risk. And we want to go through a process to identify what those risks are to your unique situation and then take the appropriate actions for you and your unique situation.

I hope you're staying safe and healthy out there if you have any questions, be sure to the put time on my calendar, or call or text me, and I hope that you have a great rest of your week. Thanks!


Have something on your mind? Schedule a free call with Nate.


Pursuit Planning and Investments, LLC is an Investment Adviser registered with the State of Oregon. All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions. Past results do not guarantee future results. Please contact us at 971-803-5948 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions.  Additionally, we recommend you compare any account reports from PPI with the account statements from your Custodian.  Please notify us if you do not receive statements from your Custodian on at least a quarterly basis.  Our current disclosure brochure, Form ADV Part 2, is available for your review upon request, and on our website, This disclosure brochure, or a summary of material changes made, is also provided to our clients on an annual basis.

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