Is It Correct To Wait for Correction?

In the stock market lingo, a correction means a reverse movement going towards a negative figure by at least 10%. This usually happens in order to adjust for an overvaluation in stock prices. However, these corrections are just temporary downward movement but is oftentimes believed to be a signal that a bear market is about to happen or in worst case scenario, a recession.

Many people who are recently introduced to stock market begin to panic whenever they hear the “oldies” mention about the “correction scare” or the “big downturn”. Even if a correction would actually mean a good opportunity for new investors to pack in their savings and funds into the stock market.

But should new investors really have to wait for the stock market correction to happen before they start putting in their money?

Wait for Correction Before Investing?

While it’s necessary to “feel” the times and study where the market is “probably” going by reading charts or hearing the news or whatever expert bases one wants to use, new investors should know that the most important thing to remember and do is to focus on the goal or purpose.

Whether the market is going towards the bad times, if an investor’s target is still miles away down the road (5 or 10 years or even more), then the right time to invest is TODAY. That is regardless if the correction is gonna come tomorrow or next week or next month. Besides, who in the world knows the exact day that a thief will come and steal the show? What matters is that you are on your first steps towards achieving your long-term goals.

Also, the scariest part is not the correction itself but how one will handle the heat of the moment. There will be times when your portfolio will be bloody red. You will feel as if you lost the cause. Are you prepared to for the “gulat” and the possible high blood pressure? Are you willing to wait for quite sometime before you finally able to get back what you will possibly lose on paper?

As long as you are investing in winner stocks and equity funds and your goals are way beyond what you can see today, there are no reasons for you to back out and hold on to your cash for long.

Invest NOW!

P.S. 1. Bro. Bo Sanchez has appointed me as a coach for our young and new investors at the TrulyRichClub social site. It’s a fun, learning family with the purpose of “helping good people become rich”. I’m inviting you to join the TrulyRichClub too and email me at burngutierrezblog@yahoo.com.ph if you have any questions. Click here to join!

P.S. 2. Manila Workshops and LifeQuest Training & Consultancy in cooperation with Angat Pilipinas Coalition for Financial Literacy will teach you to be clear on what sustainable marketing encompasses. For starters, you will study what it takes for a business to be sustainable and why it is paramount for a small business to be sustainable in these times. Then, you will learn how to approach sustainable marketing strategically and connect effectively to stakeholders. Jose Roberto L. Del Rosario, Jr. (Sonny) teaches via these webinars on Wednesday, May 13, 2015 – 7:00 PM to 9:00 PM (Part 1) and Wednesday, May 20, 2015 – 7:00 PM to 9:00 PM (Part 2).  ManilaWorkshops will send you the event instructions once payment has been made. Learning Fee is Php 1,500 for both sessions and student Promo Rate of Php 750 for both sessions (School ID provided). Please use ANGATPH code upon registration. Visit http://manilaworkshops.com for registration and more details.