I would be very cautious, if I was told or advised to invest my money in something, because the prospects are excellent right now and business is BOOMING. I can only tell you what I think. Every time I hear the word boom, no matter if it is the stock market, the real estate market or something else, to me it is a sure sign that you should run for cover. If future prospects are only seen through rosetinted glasses, if people talk of almost limitless growth, then I dare say things are about to peak. Be careful when excellent news about the economy and companies don’t lead to market prices rising further. I would say, that that is when things have peaked. That is the time, when I would begin to “say goodbye”! EVEN THOUGH THE IDEA OF SELLING IS HARD because the market is booming. Even though the idea of selling is hard, because all the prospects are looking so good, one piece of good news is followed by another, I would still do it. Just pay attention to it yourself some time! I am curious what kind of experience you will have.
It works just the same, the other way around. If you hear talk about a CRISIS, a CRASH or something like that, you should prick up your ears, because the right time for a good investment is close. So, if all prospects are described as anything but rosy and seven meagre years are proclaimed yet share prices stop falling, that is when you should slowly start buying. EVEN THOUGH THE IDEA OF INVESTING IS HARD because there is a deep crisis in full swing, even though it is hard to invest, because right now everything is going badly and seems at risk, because prospects are looking so bad, you should still do it. If you want, just check things out yourself! Make up your own mind about it! You will see that that is how it goes. Think about the T for thoughts by André Kostolany! And think about the P for patience, because the chances and the opportunities for the right entry and exit are right around the corner. They are right there, you just need to wait for them!
And here is one more important experience. If you have found a good entry point, try NOT TO BE DRIVEN AWAY FROM THE MARKET TOO EARLY, if prices go up again afterwards. That means, that in such difficult times, a rise in market prices by ten or fifteen percent usually seems enough and people sell too early, often far too early. Think again of the P for patience. I just want to make it clear to you, that stock markets have always grown by several hundred percent (in number: several 100 %) after a weathered crisis. However, if you believe in the apocalypse, then it doesn’t matter, how and where you invested your money anyway.