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The Perfect Time to Buy a Stock

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Investing Lessons From The Tragedy Of The Titanic

“Andy, is it a bad idea to buy stocks right now?”

I get this question all the time. Right now we’re in the longest bull market in history with unprecedented gains. It’s easy to show that the market is overvalued and prices are too expensive right now. It looks like with a few days of drops that it might even come down and crash.

So are people stupid if they buy stocks right now? Honestly, I think that’s the wrong question to ask. Here’s why: at every point in time, an investor can ask that same question.

When you look at a chart in hindsight, it’s easy to see the right moments to buy and sell. But when you are in the middle of it, how can you know?

I think a better question is this: “What was the real problem with the Titanic?” If you’re wondering what this has to do with the stock market, stay with me.

As we all know, a lot of people died in the tragedy of the Titanic sinking. People could blame the ship designer, or the builders, or the crew, or the captain, or even the iceberg itself.

But here’s the way I look at it: the Titanic was not the first ship to ever sink. Other ships have crashed and sunk before. With the case of the Titanic, though, the problem could have been easily fixed. There simply weren’t enough lifeboats for all the passengers and crew.

The ship sank slowly, so there was plenty of time to save everyone. But there were not enough lifeboats.

So the issue isn’t whether the boat is going to sink or not, the question is all about planning your exit. In other words, do you have a lifeboat in place in case the market goes against you. No one can tell you for certain whether the market is going up or down tomorrow. But you can plan on getting your lifeboat ready.

As a Rich Dad Advisor I have many opportunities to speak with people all around the world about wealth and investing. So you can imagine how many people ask that question of whether or not they should buy stocks right now.

My answer is always this: I don’t care if the market crashes because I always have an exit. I have the freedom to enjoy this market if it goes higher and higher. But I don’t care if it goes down because I have planned for that possibility and put precautions in place.

Again, the key is to increase your financial education. Part of a good financial education is to also gain new tools you can use to improve your cash flow and wealth.

That’s one of the keys that students in my Mentor Club receive every week. They see how we use smart and simple strategies to lock in our profits and reduce our risk to almost zero.

We also give strategies to protect our stock positions with “insurance” that works just like insurance on your home or car—you protect the value of what you have. That’s how we make sure we always have enough lifeboats should the market go against us.

If you have a 401k or other retirement account, do you have an exit strategy? Do you have a way to insure your account if the overall market goes against you? If the answer is no, then take a lesson from the Titanic and get one fast.

So let’s go back to that original question: “Is it a bad time to buy stocks right now?” Too many people think the only way to invest in stocks is to buy a stock and hold onto it forever. For people like that the answer is yes, it is a bad time to buy stock.

However, if your goal is to get smart and make safe and steady income from the market, then the best time to invest in the stock market is all the time. Because when you have the right training, skills, and tools, you will have everything you need to create cash flow and control your risk.

Again, it really doesn’t matter when you decide to hop into the stock market. There’s never a bad time to get in and take advantage of cash flow opportunities. The only difference is knowing in advance how to protect yourself with a lifeboat.

The market can always hit new highs and have record drops. A cruise ship can arrive at its destination, or it can hit an iceberg and sink. Your job is to be on the ship to arrive at your desired destination, but to always be prepared with your exit strategy.

For more information about how we invest in the stock market using smart, simple, and safe strategies go to

Original publish date: April 06, 2018

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