Expert: Paul Henneman - 3/28/2008

Question
I reasoned that I should not put NEW money into my current investments bgecause the economy is bad.  Is this good thinking?

Answer
Nikki,
  Thank you for your question! I would tend to disagree with your thinking on this. The best time to invest is when stocks and other investments are cheap. The prospect for future gains is greatest by doing this. When all of the economic news is bad, typically stocks are at cheap levels, as they are now.
  Of course the economy could continue to worsen, so it would be a good to spread out new investments over time. Trying to time exactly the overall market is a tough thing to do, and professionals spend their lives researching this. For most individual investors, it is far better to stick to an investment plan, and continue your contributions to your investments as you normally would. This way you will be well positioned for when the economy and your investments bounce back. This could happen next month, or next year.

I hope this helps, please do not hesitate to follow up with me if I can be of any additional service,

Sincerely
Paul Henneman
President
ValuEngine Inc
www.ValuEngine.com