Gauging the Market: Is It A Good Time to Buy Stocks?

Is It a good time to buy stocks. If fear levels are high, the answer is yes

Is It a good time to buy stocks

Updated June 2023

The ideal point to open up long positions is when a market experiences a crash-like move hence the saying buy when blood flows freely in the streets. The masses are always on the wrong side of the needs;  the tulip mania, the 2008 financial crash, and the most recent covid crash are some prime examples that illustrate the masses are always on the losing side.  The green circles in the chart below highlight the best entry points. However, this is a very long-term chart, and some pullbacks might not look as strong.

Hence the answer to the question: Is It a Good Time To Buy Stocks, is a resounding yes, but only if the masses are in a state of panic.

Remember, if the trend is up as it currently is, you should be drooling at the prospect of such a substantial pullback. In July 2015, we welcomed a healthy pullback, embraced sharp pullbacks in Jan and Feb of this year, and will embrace it again as long as the trend is up.  There is no reason to panic at the possibility of a substantial correction. We are already preparing for such an event, and we will take a defensive posture as of today.

Is It a Good Time To Buy Stocks? yes if the trend is up 

Fear always comes in the way of opportunity; you must understand that. At present, it is best to hold your gunpowder until the market pulls back strongly. History indicates the market usually experiences a relatively strong pullback after a strong run-up.

Sharp Corrections Equate to Opportunity

Until the trend changes, the theme should be to ignore the noise, focus on the trend and the stronger the deviation, the better the buying opportunity.   Market Update Dec 15, 2016

We might be in for a stronger-than-expected correction; we are not stating the bull is over, and we will not state that until the trend change direction; however, given that the pendulum swings in both ways, the risk-to-reward ratio from a psychological perspective is not in our favour. This crowd is always skittish, so one hard slap of fear and they will crumble and scuttle for the hills; as the trend is up, the stronger the pullback, the better the opportunity.  When it comes to trading, panic is the code word to buy. And remember, the right time to buy a stock is when everyone thinks it’s time to sell and hide.

Random thoughts on: Is It a Good Time To Buy Stocks?

Focus on the simple factors which help determine the trend; factors such as mass sentiment and extreme patterns (technical analysis) are on the charts.  The news is not an essential factor; in fact, toilet paper has more relevance than news; at least, it serves a noble function. One cannot lay the same claim to the news.

Anyone that advocates giving into fear should be thrown headfirst out of the front door(figuratively speaking, that is) and never allowed back into your house or mind; fear never pays off; only the vendors of fear will make a handsome buck, the buyers will lose their pants, their shirts and their knickers too.

Market Volatility: Should You Buy Stocks Today

Experts and or Market timers have such a dismal record and why they will continue to fail for the foreseeable future. These guys might get it right once, and in almost every case, that is due to pure luck, for they fail to become two-hit wonders.  Market timing based on fundamentals and technical analysis always fails, and there is a reason for this colossal failure.

90% of advisers, experts, and financial commentators do not know what they are talking about, which means the same rules apply to the masses. Want proof look, go back and look at how they repeated the same nonsense each time the markets crashed and or surged upwards. They screamed that the world would end when the markets were pulling back, and they alluded that the Milky Way was the next stop for the bull market when it was rising. They failed to spot the so-called top or the bottom in both cases.

Why do you need someone to tell you the obvious? Do you need a jackass to tell you that the markets are crashing when it is all but evident and vice versa? The only function these media wenches/experts serve is to inject emotion into the equation, make the masses sing right at the top, and make them panic right at the bottom.  All these experts and or media wenches fail to account for a straightforward factor, and this simple factor overrides any of the other pressing factors they list time and time again.

Is It a Good Time To Buy Stocks? Always in times of Volatility

No matter how often we warn traders about the dangers of giving in to fear, a significant portion of traders give in to it and follow the well-trodden path of failure.   No matter who he or she is, no trader in the world can pull up a long-term chart and prove that the following statements are false.

  • Market crashes equate to fantastic long-term buying opportunities
  • Giving in to fear always leads to a negative outcome regarding trading.

In a nutshell, one can only win if one conquers the demon of fear; if one does not, it is just a matter of time before that person is separated from their hard-earned money if they are investing in the markets.  Following the mass mindset is very dangerous; the outcome is always negative.  No matter how any expert wants to spin it, there is no way to prove that back-breaking corrections or stock market crashes are nothing but stock-buying opportunities over the long run.  The answer to the question is it a good time to buy stocks? depends

If one wants to speed up their retirement, the best tactic would be to build up cash during the last phase of a bull market, where the masses start singing. Additionally, one can consider living 1-2 standards below one’s means; this should not be too hard as most individuals live several orders above their means. When the markets crash, use simple sentiment and technical analyses to identify bottoming action and load up on quality companies.

Additional Food for Thought 

Today everything is interrelated; we do not have free market forces anymore. Everything is manipulated, from the food you eat to the provided data.  If you are aware of this, you can plan accordingly. Identifying the problem is over 80% of the solution, and this is why most people do not know what to do because they do not understand the problem.

Now you know why we are the only financial website that covers such a wide array of topics that, on the surface, appear to be unrelated but are deeply interwoven.  Mass psychology is a potent tool, and if employed correctly can help you spot the abnormal levels of manipulation the masses are subjected to. It would be a good idea to familiarise yourself with the concept of “ Plato’s allegory of the cave.

Closing thoughts

Is it a good time to buy stocks when the crowd panics? During times of market uncertainty, this question often arises as investors grapple with the fear of losing money. However, history has shown that such market volatility can present great opportunities for investors willing to buy when others are selling.

While it can be tempting to follow the crowd and sell stocks during times of panic, contrarian investors willing to go against the grain and buy when others are fearful can reap significant rewards in the stock market. By staying focused on the long-term prospects of their investments and avoiding short-term market noise, investors can position themselves to achieve greater returns in the long run.

However, it’s important to remember that investing always involves risk, and investors should research and consult with a financial advisor before making any investment decisions. Additionally, buying stocks when the market panics is not a foolproof strategy, and it’s crucial to stay disciplined and avoid making emotional decisions based on short-term market movements.

In summary, while there is no one-size-fits-all answer to the question “is it a good time to buy stocks?”, investors with a long-term investment horizon and are willing to take on some risk may find that buying stocks during times of market panic can present attractive opportunities.

You have to be in it to win it.

If you seek freedom, the 1st task is to attain financial freedom to break free from the clutches of the top players who strive to enslave you. They want you to run in a circle like a hamster on a spinning wheel; the hamster thinks the faster it runs, the further it will go, but sadly it is going nowhere.

We teach how to use Mass psychology to your advantage, how to view disasters as opportunities and how not to let the media manipulate you and direct you towards actions that could be detrimental to your overall well-being.  Visit our website’s investing for dummies section; it contains many free resources and covers the most important aspects of mass psychology.

Secondly, subscribe to our free newsletter to keep abreast of the latest developments. Change begins now and not tomorrow, for tomorrow never comes. Understand that nothing will change if you do not change your perspective or mindset. If you cling to the mass mentality, the top players will continue to fleece you; the choice is yours; resist and break free or sit down and do nothing.

Originally published in Feb 25, 2017, this article has been continuously updated, with the latest update in June 2023.

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