I have been investing for a few years now and following the market for longer. During this time I have seen a lot. Both bull and bear markets, full sectors rising and falling, stock splits, dividend increases or decreases, new IPOs, mergers and acquisitions, just to name a few. While this is all normal for the market, the question remains. Why do I believe this is the best time to be an investor?
Market Highs – A few months ago we reached a market milestone and the DOW surpassed 20,000 for the first time in history. With every passing day it is breaking records and we are seeing new record highs that we have never seen before. While 20,000 seemed like only yesterday, the DOW is quickly approaching the 21,000 mark.
Trading Platforms– All investors seek out quality companies with good fundamentals and capable of long term growth. But did you ever think about the companies that provide the trading platforms for us to use? They are companies too just like the ones we invest in. By that, I mean they must do all they can to remain competitive amongst the other platforms. An example from last week, Fidelity cut their trade fee price down to $4.95. That’s nearly a 40% decrease from its original $7.95 fee. This strategy will bring in new investors as well as draw more trades from current investors. If Fidelity’s competitors have not already done something similar, I believe they will very soon to remain competitive.
Technology– With the information era upon us, we can have data at our fingertips 24/7. With the phone apps available, it’s easy to get stock price updates, news articles, alerts, and more automated right to us. It’s easy to pull up any publicly traded company, read their financial reports, see their past performance, review the ratios, and make an informed decision on investing. Anything we want to research and do our due diligence on, it’s out there for us to find.
Community– Going along with the last point technology, networking has never been as big. With so many forms of social media, it’s possible to communicate with anyone in the world. The DGI community itself has grown immensely, with new blogs joining daily from all over of the world. With a certain level of transparency, every member of our community can share their journey, experiences, goals, knowledge, ideas, and advice with others and receive positive feedback to drive them forward. With so many quality blogs present, new investors can find a good starting point to build their own portfolios.
These are just a few reasons why I believe now is the best time to be an investor. Would you agree? What are your thoughts?