Is it time to get back into the stock market?

Updated

Many investors continue to sit on the sidelines waiting for the stock market to hit bottom. Others, such as value investor guru Warren Buffett, have gone on a spending spree. Buffett sat on cash for years while the Dow shot up to over 14,000. He thought everything was overpriced. Today he's ready to buy. He's famous for the quote, you "want to be greedy when others are fearful and fearful when others are greedy." Right now he's being very greedy.

I too think we're seeing bottom basement prices and have some great opportunities, but how does one find those gems? Doesn't it seem like everything looks too risky? Possibly. We may not be at the bottom, but no one can successfully time the market consistently. Some can make good guesses, but don't count on them being right all the time.

You do need to be ready to accept the fact that stock prices may fall further, but as long as you invest with money you won't need for two to three years, you're likely to catch the wave of recovery when it comes.

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