What is the best time to invest

What is the best time to invest
Investing in a business or independent professional practice is something that everyone considers at some point in their life. The benefits are clear and, thanks to the development of digital solutions, it is increasingly easier to obtain financing to do so. However, the same question always arises: What is the best time to invest?

Advantages and risks of investing today

Over the past decade, the global economy has experienced outrageous growth. The emergence of developing countries such as China and Brazil has changed world trade and financial markets have been organized around technology as the main avenue for investment.

Thanks to this, technological solutions and management services,  online money,  fintech, and many others, offer a  wide range of tools and opportunities for mid-level investors and businesses seeking financing. Therefore, strictly speaking,  better conditions for investing have never existed before.

However, the current state of globalization also produces greater risks, since an ecosystem is obtained in which the price of products and trade, in general, are determined globally, based on different factors such as fuel prices. , energy, food, and financial capital.

Precisely for this reason, the ramifications of the current conflict between Russia and Ukraine affect all these factors and have repercussions in most markets, both due to the scarcity of goods and the increase in demand that this produces. In this sense, although the conditions for investing have never been better, the current panorama is complex.

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Two major factors must be considered today when investing: on the one hand, the retraction of the financial markets and, on the other,  the inflationary context in the European Union. In the first case, the return on financial assets falls, while in the second case, inflation produces constant increases in the costs of any activity.

Is it a good time to invest?

Faced with this context, the truth is that there are many more financing opportunities and tools to invest: from investment funds and savings instruments to financing services and loans for companies, businesses, and professionals seeking to develop their activity.

These types of resources are very effective against an inflationary scenario in which money devalues ​​over time and the interest rates applied to financing services are accessible to invest. And this is true for stock investing as well: current asset prices do not represent their apparent real long-term value, so they can be invested at a lower price.

However, although all these variables point out that this is a great time to invest in the market or our activity through financing, it is also true that there is great instability at the macroeconomic level. This is the reason for the fall in the value of stock assets, so conservative investors prefer not to risk it.

Such instability reduces the possibilities of market analysis and short-term projection, so the risk is greater for the person with a lot of exposure and great capital. In this sense,  it is essential to obtain advice and have a strategic plan that considers the possible threats we face and that allows us to direct our efforts towards clear and realistic objectives,  depending on the characteristics of our activity in particular.

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What is the best time to invest?

Determining the best time to invest will largely depend on the context and the factors mentioned. However, by itself this will be insufficient to prosper:  we must consider the particular characteristics of our project, our strengths and weaknesses, and, finally, the investment and financing opportunities available.

SWOT analysis and market study

Since nothing happens in a vacuum, it is essential to know in which sector and market the activity in which we wish to invest falls. This includes the companies and business models used to obtain a return, but also the market situation, the financing options, and how the competition is constituted; In short, it is to carry out a market study that allows us to know the activity integrally.

In the same way, we must know ourselves, our strengths and opportunities, but also our weaknesses and the threats we face; In short, a  SWOT analysis allows us to establish whether the current conditions are ideal for investing or whether it is worth waiting a bit.

Don’t expect too much

Although determining the best time to invest is important,  it is recommended not to prolong the decision too long, since the conditions and the planning can depreciate over time: any analysis or study that we carry out loses validity in the face of a context of so pronounced economic instability.

Although we can wait for an opportunity or protect ourselves against a possible threat, the truth is that we will never be 100% ready to invest. Therefore, it is necessary to consider the financing possibilities and launch a serious proposal as soon as market conditions allow it.

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Obtain updated information and interact with actors in the same sector

Faced with any activity or investment in which we seek to get involved,  the experience of people with experience in the sector is always of great help. Therefore,  forming professional relationships and links with agents who are involved in different areas within the same activity can only improve our chances.

The same can be said of information: in a globalized world in which regional economies are closely related,  it is necessary to have reliable and up-to-date information on the market. This allows you to make decisions in real-time and determine the best time to invest.

Consult professionals and specialists

Finally, to establish the ideal moment to invest, it is essential to consult specialists in the field. There is a wide range of advisory,  financing,  management, and investment services that are exclusively dedicated to lending their knowledge to investors seeking to obtain a  reliable idea of ​​their chances of success.

Of course, determining which professional is more convenient to consult will depend on the characteristics and profile of the investor. The benefits of using this type of advice far outweigh the cost of acquiring it, so if you have the opportunity, it should be taken into account when determining the best time to invest.


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