The question 'when is the right time to buy stocks and gold?' is the most frequently asked by investors, especially amid economic uncertainty caused by the trade war initiated by Donald Trump. The answer is not as simple as many people think.
From a historical perspective, the best time to buy is when others are fearful. As Warren Buffett said: 'Be fearful when others are greedy, and greedy when others are fearful.' During crises, asset prices are pressured below their fundamental values, creating opportunities for patient investors.
However, a more practical and proven effective strategy is dollar-cost averaging (DCA) — investing a fixed amount regularly regardless of market conditions. Research shows that DCA produces returns that approach or even beat market timing strategies for most retail investors.
For markets in general, indicators to watch include: major indices that have fallen more than 20% from peak (bear market territory), P/E ratios below historical averages, and attractive government bond yields. For gold, watch the gold-to-CPI inflation ratio and global central bank buying patterns. Most importantly, ensure you have an emergency fund before investing and only use money you will not need for 5+ years. The best investment approach is one that you can maintain consistently through both good times and bad.
