The Dow Jones Industrial Average has been dropping since July 2015. The recent small rise makes some investors hopeful that their pain is over. The red and green tint in the background of the chart below give good clues for short-term direction. The “big picture” is we’re still in a Bear market until at least the Dow reaches 17,200 and can stay above that for many weeks. As an investor, some would want to buy stocks “cheap” now.
I prefer to get out of harms way back in July. And mid October 2015 would have been a chance to buy in again. As of mid-day Feb 29, 2016. It’s not a safe time to buy. Remember that 1930 wasn’t the bottom of the big crash of 1929. Many people bought there thinking it was the bottom and were in further pain.
If you don’t know how to time the market, then tools like the chart below are very helpful.
