The best time to invest is when there is fear; the worst time to invest is when there is greed in the market.
That is to say that the best time is when market is down and that the economy is in despair, when job losses are high with massive retrenchments. However, avoid individual stocks because companies can close down if economy becomes very bad.
The worst time to invest is when unemployment rate is low, when economy is good, when wages keep on increasing and when the equity market is marching higher and higher everyday.
In practice, most people will only seek financial advice when market is “good” which ironically is the worst time to buy. Financial advisers who could only earn a commission selling investment products will tell their clients to buy despite it being the worst time to do so.
Hardly anyone would seek advice from financial adviser when times are bad. In fact, many financial advisers themselves would recommend “safer” products such as a commission paying single premium endowment when actually it is the best time to enter into equity markets.
That is why most people will never earn anything from investing – whether they have a professional adviser or Do-It-Yourself.
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