Is today a good time to enter the stock market?

Posted by Fitz Villafuerte under Investing on December 25, 2012

This is my first time to invest in the stock market. I’ve read most of your articles and still reading more. To keep myself up to date, I am also reading a lot of news update regarding stock market. I’ve read that sincee our market is performing well, stock prices are up. I thought it may not be a good time to buy one. As the old saying goes, whatever that goes up must come down. I am afraid that I might be buying it at its highest price. I read about the term bull run & some think that the stock is at its peak. Should I wait for it to go down before buying? Also, since the mining sector is down, is it wise to buy stocks from this sector when prices are cheap? If I’m going to apply cost averaging, does these things matter? I’m quite wary with how much I am buying it in the beginning.




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7 Responses to “Is today a good time to enter the stock market?”

  1. ChrisTiPiD says:

    Our market has set its peak 38th times for this year. Who knows that it might reach its new peak by tomorrow. On the other hand, knowing the risk, it may go the other way around. But whichever way it goes it is most of the time (if not always) best to buy stocks today. It looks like you are in the knowledge of the cost averaging method and it’s the best thing to do if you don’t have too much time to spend in studying the charts and spending hours in analysis. Your best weapon to lessen the market risk would be 3 to 5 years of cost averaging in blue chips that has their way up.
    you may check on some of the best picks for cost averaging:

    STOCK STOCK NAME
    AC AYALA CORPORATION
    ALI AYALA LAND, INC.
    AP ABOITIZ POWER CORPORATION
    BDO BDO UNIBANK, INC.
    BPI BANK OF THE PHILIPPINE IS
    DMC DMCI HOLDINGS, INC.
    EDC ENERGY DEVELOPMENT CORP.
    ICT INT`L CONTAINER TERMINALS
    JFC JOLLIBEE FOODS CORPORATIO
    MBT METROPOLITAN BANK & TRUST
    MPI METRO PACIFIC INVESTMENTS
    MWC MANILA WATER COMPANY, INC
    SM SM INVESTMENTS CORPORATIO
    SMPH SM PRIME HOLDINGS, INC.

  2. ForsakenOne says:

    Hi mdc27,

    I’ve only been investing in the stock market a little over a year. But in my experience, timing your entry is primarily based on the stock and your strategy.

    Even is a stock is t it’s peak, if you’re a long-term investor, it will still make you a lot of money in the future. If you’re cost-averaging, even better. No need to time your entry at all.

    And I agree with ChrisTiPiD’s stock suggestions. I believe Fitz suggested the same stocks in a previous article.

  3. mdc27 says:

    Thanks for the tip! 🙂 I just bought some stocks from SMPH thru Citisec’s EIP.

  4. ChrisTiPiD says:

    yes forsaken one, those are the top picks of Citiseconline/colfinancial 🙂

  5. enjei says:

    Hi Fitz. Btw, i’ll be happy then to say my sincere appreciation for your well articulated blogs. My day wont be complete without checking your blog as this has truly aid me understanding financial terms and expanding my horizon towards financial freedom. Keep it going!

    I’d like to pose a question about emergency fund. I’ve been saving 10% of my income since the time I started working with my current company now. Well, it’s actually a company mandated move to enforce employees by saving 5 or 10% of their monthly income upon regularion. we’re bearing the fruits of it since we’re able to loan from it whenever we need it. My question is, will it be ok to use my provident fund for stock investment?

  6. mar says:

    as for me, Stock Index Fund is the way to go. no need to select which company to buy. no need for day trading. use cost averaging. Just buy, hold and rebalance!

  7. nilo catabian says:

    when you ask today? it’s better to invest in the Philippines (PSE) and 2 countries mention on the prediction that 2013 to 2017 invest in gold. let me reminfd you that philippines is one of gold producer in the world as for google … (and our local miner can prove it,,,as seen on Balita) and every large oil and gold company are now engageing joint exploration on our territory when pnoy administration change the cons. on minning having a better exploration with foreign company. It’s about market …were gaining accdg to PSE >..The Dragon is awake….if foreign investor is here everybody goes with the business hotel resort restaurant …casino. Gold, silver wine it’s about trending…last decade it;s about communication and technologies ..now it’s mining and realstate more tourist will be comming…and that is why you have to invest…..trend will be on schedule which one will be the first….realstate……they build hotel/condos restaurant casino for the foreign business and operation…home for their long exploration….hotel for accessible and restaurant and casino……and etc….trending with market is the analysis for your question you have to buy while cheaper (it may be deceiving to hear from news you have to analize your feeling and understanding before buying…..need to follow the 10 commandment in stock market it’s very useful….you can find a hint . As of now i got some Hint. but nobody shares you their secret on market….. if you read the 10 commandment on stock you may laugh and it works…….i experience because my first 3 months with citisec ilost 10k but i learned i’m gaining and learning from my mistates……i almost there heating almost 75k for 1st week with 10 commandmt…but i didn’t follow some rule of it thats why i lost 10k…..hahaha i learned now i got 5 stock playing and it’s fun to earned slowly but surely……i’m waiting for the big bull……happy stock buying…..hehehe

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