Now Is Best Time to Invest
By Ken Little

One of the biggest challenges most beginning investors face is making sense of market news that may or may not signal a time to buy or sell.

The concept is called market timing and if you have visited this site before, you know my thoughts on market timing: it can't be done.

Here is an excerpt from an e-mail I received recently:

I am 26 years old and have never invested money in anything, but was thinking about buying a mutual fund sometime within the next month. However, last week I heard a news report on Alan Greenspan, which said that the economy was overheating and rising interest rates might mean a downturn on the market.

So my question is, in your opinion, is this a good time for a first time investor to "get in the game" or would it be better to wait for a few months? Thanks very much, Jeff.

Jeff is referring to Federal Reserve Board Chairmen Alan Greespan. The Fed, as it is known, controls key interest rates. Raising interest rates generally has a cooling effect on the stock markets and the economy. Likewise, lowering interest rates generally stimulates the economy and the stock markets.

If you want to speculate in the market, you should indeed pay attention to interest rates and economic reports that may move the market one way or the other.

However, if you are a long-term investor (the most successful strategy for average investors, by the way), then I wouldn't pay much attention to the minutiae.

I'll answer your question Jeff with Little's Golden Rule of investing:
Yesterday was the best day to start investing. Today is second best. Tomorrow is better than nothing.

The sooner you start a habit of investing the sooner you'll be on the road to financial freedom.

Good luck, Jeff