Question

Please discuss the following:

As of January 31, 2019, stocks are showing increases since investors are less concerned now about an economic slowdown. Do you think that now is a good time to buy stocks?

How about futures? (Price for futures can be found at: https://www.cmegroup.com)

Answer 1

Yes, This is good time to buy the stocks if they are showing a positive move and investors are not worried about economic slowdown. Investors should by stocks at this point of time but should keep in mind these points:

1. Stocks that have taken support at lower levels and now growing, should be bought.
2. Fundamentally strong stocks.
3. Stocks that have been corrected and consolidated, can be bought.
4. Stocks that are trading above their moving averages, can be bought.
5. Stocks that are showing bullish pattern on the charts.
6. If political and economic conditions are good and there is no any significant change that will happen then stocks can be bought at the current level.

Investors may stay away from futures now because futures contracts have expiration and they are volatile and are riskier.