#18 When is the best time to invest in the sharemarket and what is the best strategy for the cautious investor?
At IML, over our 20-year journey, we have invested through several market cycles and we are often asked the question by investors as to when the best time to invest in the sharemarket is.
Over the longer term a sharemarket cycle will reflect the expansionary and contractionary periods of economic activity, as reflected in corporate profits. The truth is that on a month-to-month or quarter-by-quarter basis the sharemarket is virtually impossible to predict as it is often driven by the emotions and moods of investors.
In fact, the sharemarket seems to swing between euphoria and depression making it very difficult for most investors to know when to invest their money in the sharemarket for the best outcomes.