Originally posted by Swager
So, is now a good time to invest??
Now is an excellent time, but you just be selective. The averages have had quite a run since mid march, and jumping in with both feet at this time could put you in the "Bear Trap".
Contrarians are looking at investor sentiment right now, which is still quite poor. This is an excellent sign for the market.
I would recommend dollar cost averaging. It's a very simple time tested method for an uncertain market.
If you are investing a significant amount of money, you should do your homeowork, or have someone do it for you, and select quality individual equities, bases on both Fundamental and technical merits.
If you are investing a smaller amount, you should be looking at a mutual fund with a long track record. (10 years or more) Investigate the tenure of the funds management team. Compare it's performance with the correlating index in both bull and bear markets. Finally, if you are satisfied, examine the Fee structure.
No load fund are not no load. Look into the 12b1 fees, etc. Some of these No loads are more expensive than loaded funds.
Also, if you select a load fund, ask if the fund offers a "C" share. This is a share class that most brokers will never talk about because we get paid about 1/2 the normal commission.
An A share charges anywhere from 4.5-5% right off the top, but has lower annual expenses. (Longer term investors buy A shares)
A B share has a CDSC (contingent defered sales charge). You pay nothing up front. If you sell the fund in year 1, you pay 5%, year 2, you pay 4% etc...until year 6, when the funds can be converted to A shares. (Please note, different funds have different fee schedules)
A C share is a level load. Nothing to buy, if you sell in the first year, you pay 1%. After year 1, you are free to sell for nothing. However, C shares have the highest annnual fees (you never see these, they come out of the funds returns) and nevr convert to A shares.
Hope this helps.
