You’ve probably heard of the saying “buy low and sell high” when it comes to investing. So if you’ve been watching the Dow lately, as it’s surged to new record-highs, you may be wondering: Is it too late to buy?
Not yet. Many financial experts believe there is still room for growth—even more so if you are in it for the long haul. But where you put your money matters.
High-dividend paying stocks sectors that tend to make money regardless of the economy—think consumer staples, utilities and healthcare—have been and should continue to be a solid bet.
If you think you can stomach more risk, you may want to consider stocks in the real estate, materials, financial and technology sectors. Those sectors have generally performed well recently, but have likely not reached their short-term potential.
If you’re wary of putting money into individual stocks, consider investing in sector-specific exchange-traded funds (ETFs), which offer an easy and relatively inexpensive way to achieve targeted market exposure.
Regardless of the stocks or sectors you pick, be sure to think about how long you’re planning to keep money in the market. Different investments offer varying degrees of risk and return, and may be best suited for different investing time frames.
In any case, it is key to have an overall portfolio that’s well-diversified to help protect you during market fluctuations. This means investing in a wide variety of sectors and having an appropriate blend of equity and fixed income investments based on your age, objective and risk tolerance.
Bottom line: Don’t be afraid to jump in! Just be prepared to ride the waves if you are investing for the long term.