The absolute best time to start investing would be the day you turned 18 and could legally open a brokerage account. The second-best time to start investing is right now. According to the Fear & Greed Index, 2025 is the time for us to be greedy, suggests Kelly Green, editor of Dividend Digest.
In his 1986 chairman’s letter to investors, Warren Buffett noted, “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” Well, this is the Fear & Greed Index…
Source: CNN
The Index has only been able to get out of fear territory for six days this year. And when it did, as soon as the index crept into the low neutral sentiment zone, it immediately retreated.
Some people use the CBOE Volatility Index (VIX) to measure market sentiment. The VIX measures volatility by tracking 30-day options contracts on S&P 500 stocks. A higher VIX suggests there is more volatility or fear in the market.
But I like the Fear & Greed Index because it combines seven indicators that measure different market behaviors. The VIX is one of that group of seven.
It always surprises me how people come to me for stock advice when the markets are ripping higher. They feel like they are being left behind and want to jump on the runaway train. That’s the worst thing you can do.
Buy when others are fearful and sell when stocks uncouple from their business and start to outperform. It’s solid advice for buying low and selling high. Joining the herd can result in the exact opposite.
Indeed, dividend investing is a long-term strategy. We want to use time in the market and market volatility to our advantage. During the entire time you hold a stock, you can continue to add on drops and sell when shares go up, even if you aren’t ready to sell the whole position.
Now is the time to get your money into the market. Every pullback is an opportunity for future wealth to be made. No matter if you have $50 or $10 grand, get that money working for you.
