When is the best time to invest your money? How do you know it is the best time to invest your money?

This is the question that keep on lingering the future/new investor. When is the best time to invest your money?

The main objective of investing to gain more from what you have spend. By doing this, most of people will need to spend their earnings, resources for starting up their investment. Most people worked hard to earn the money, that's why we don't want to lose it anymore!

So, when is The Best Time to invest money?

This article found here could give some guide to all new investor in choosing the best time to invest money.

The Best Time to Invest Money
By James Leitz


The best time to invest your money is NOW ... if you understand diversification and dollar cost averaging. Look at it this way. If you don't invest your money, you'll either spend it or earn low interest rates as a saver.

The only way to get ahead is to learn how to invest. This is not as difficult a proposition as most folks believe it to be. Let me explain with some simple logic, in the form of a short story.

At a wedding reception in the early Spring of 2009, a young man named Cameron listened as his much-older uncles complained about their investment losses. "My broker's worthless, and I've lost half my money in stocks in the past year", stated Uncle Ron. "I'm earning less than 1% in interest", declared his conservative Uncle Jack. "My real estate investments are under water", Uncle David added.

Cameron had a thought as he vacated the circle of conversation. He applied simple logic to what he had just heard. He knew that both stock prices and real estate values usually went up. That's why most investors make money in both investment arenas.

If both real estate prices and stock prices are low, it might be a good time to invest money, Cameron reasoned. But he had a few unanswered questions on his mind. First, he did not know how to invest. Second, he didn't have a pot full of money. Finally, which was the better investment ... stocks or real estate? Obviously, no one ever gets rich earning low interest rates.

The next morning Cameron sat down for a cup of coffee with Uncle Jim, who was supposed to know all about this investment stuff. They formulated the following plan.

Cameron would open an IRA with a large no-load mutual fund company, since he wanted to invest money for retirement. He would have $400 a month flowing from his checking account to the fund company. It would be divided equally into four different mutual funds: an S&P 500 Index fund, an international stock fund, a real estate fund, and a money market fund.

This would give him diversification in both stocks and real estate. The money market fund offered a bit of safety and flexibility.

Cameron would keep the value of his four funds about equal. If the value of a fund got out of line with the others, he would transfer money from one to another to even things out. Uncle Jim called this "rebalancing" his portfolio. He would do this once a year.

Plus, he would have dollar cost averaging working for him, since he had a fixed amount of money flowing into each fund every month. If the price of a fund fell, the money flowing into it would automatically buy more of the cheaper shares. If the price rose, he would be buying fewer at the higher price.

Should the stock market and/or real estate market get real cheap, Cameron would have some powder dry to take advantage of the situation. He could move the money in his safe money market fund into the other three funds.

Now is always a good time, if you know how to invest.

Article Updates

Investing In Indonesia’s Rising Emerging Economy Indonesia is positioned to remain one of the fastest growing economies in Asia after China, India and Vietnam. Investors who wish to participate in Indonesia’s growth prospects can consider investing in Public Mutual’s Public Indonesia Select Fund (PINDOSF) which will be launched on 1 September 2010. PINDOSF provides unit trust investors with an opportunity to achieve capital growth over the medium- to long-term period by investing in a portfolio of equities listed primarily in the Indonesian market. Indonesia has the largest economy in Southeast Asia and is a member of the G-20 group of countries. As one of the emerging economies, Indonesia charted a healthy growth averaging 5.1 percent per annum over the 2000-2009 period underpinned by resilient domestic demand and a series of economic reforms. In comparison, the ASEAN economies registered an average GDP growth of 4.6 percent1 per annum over the same period. Indonesia’s domestic demand is supported by a large population base of around 232 million people, making it the fourth most populated country in the world after China, India and the U.S. In recent years, Indonesia’s political stability and the government’s liberalisation of the economy coupled with sound fiscal and debt management have provided a conducive environment for the country to achieve robust economic growth. *Bloomberg Consensus Forecast, July 2010 Factors Driving Indonesia’s Economic Performance Despite the global economic slowdown in 2009, Indonesia was one of the few countries that managed to register a positive GDP growth of 4.5 percent on the back of resilient domestic demand. Domestic demand was driven by consumer spending, which accounts for 57.4 percent of GDP, and investment spending, which represents 23.4 percent of GDP. In the first half of 2010, GDP growth rebounded by 5.9 percent with consumer spending sustained at 4.5 percent and investment spending rising by 7.9 percent. The factors that contributed to the rapid GDP growth of Indonesia are: Healthy consumer spending: Over the 2000-2009 period, consumer spending in Indonesia grew at a healthy rate averaging 4.1 percent per annum fuelled by higher disposable incomes amidst accommodative interest rates and manageable inflationary pressures. Consumer spending has also been supported by the rising urbanisation trend with the urban population ratio rising from 42 percent2 in 2000 to 51.5 percent2 in 2008. Meanwhile, the central bank kept its reference rate, the benchmark interest rate of Indonesia, unchanged at a historical low of 6.5 percent as Indonesia’s inflation rate moderated from 10.3 percent in 2008 to 4.9 percent in 2009 and 4 percent in the first half of 2010. Strong Foreign Direct Investments: In view of its vast opportunities, Indonesia has enjoyed rising inflows of foreign direct investments (FDI), mainly in the mining, manufacturing and transportation & communication sectors. Total FDI into Indonesia amounted to US$34.4 billion3 over the 2005-2009 period. FDI in the mining sector was driven by higher commodity prices while the transportation & communication sector benefited from increasing urbanisation trends. Robust commodity exports: Exports have also been an important source of growth for Indonesia, accounting for 43 percent of GDP in 2009. Indonesia’s major commodity exports include oil & gas and coal which contribute 17 percent and 12 percent respectively to total exports in 2009. Meanwhile, exports of manufacturing products were driven by machinery and transportation equipment which comprise 14 percent of total exports in 2009. Political stability and economic reforms: Indonesia’s economic growth over the 2000-2009 period was also attributed to the country’s political stability and a series of successful economic reforms. After President Susilo Bambang Yudhoyono took office in 2004, a comprehensive set of economic programs were implemented, such as creating more jobs, addressing corruption issues and increasing infrastructure investment spending. Subsequently, Indonesia’s economy grew at a respectable average growth of 5.7 percent per annum during his first term (2004-2009). This economic performance has helped President Yudhoyono to secure a second term following a decisive victory in the 2009 general elections where he garnered more than 60 percent of the votes cast. The smooth running and decisive outcome of the 2009 general elections have cemented the country’s democratic credentials, underpinning the country’s political stability and policy continuity. Healthy fiscal position: Due to its sound fiscal and debt management, Indonesia’s fiscal position has improved in recent years. The government maintained a fiscal deficit of less than 3 percent of GDP over the 2000-2009 period. Despite the global economic slowdown in 2009, Indonesia registered a prudent fiscal deficit of 1.6 percent in 2009 compared to 0.1 percent in 2008. Meanwhile, the government’s commitment to reduce public debt resulted in the public sector debt-to-GDP ratio declining significantly from 88 percent in 2000 to 28 percent in 2009, the lowest among ASEAN countries. Stable currency: The Indonesian Rupiah was one of the best performing Asian currencies in 2009 with a gain of 19.5 percent against the U.S. dollar due to the inflows of foreign funds. On a year to date basis to 28 July 2010, the Rupiah appreciated further by 5.3 percent against the U.S. dollar. Over the same period, the Rupiah depreciated by 2.4 percent against the Malaysian Ringgit. The steady accumulation of foreign reserves has enhanced Indonesia’s liquidity position and serves as a buffer against potential financial crises. Foreign reserves rose from US$29.4 billion in 2000 to a record high of US$78.8 billion in July 2010 driven mainly by healthy trade surpluses and capital inflows. Table 1: Performance of Jakarta Composite Index *Year to date as at 28 July 2010 Economic Outlook Due to its large domestic demand base, Indonesia’s economic performance is envisaged to be more resilient than other economies in the event of a slower global economic environment. Looking ahead, Indonesia’s GDP growth is projected to rebound from 4.5 percent in 2009 to 5.8 percent4 for 2010 and 6.2 percent4 in 2011 on the back of resilient consumer spending and investment spending as well as strong global demand for commodities. Domestic demand is also expected to benefit from an accommodative interest rate environment amidst manageable inflationary pressures. Indonesia’s inflation rate, which is driven mainly by food prices, is projected at 4.9 percent5 for 2010 and 6 percent5 for 2011. Nonetheless, the inflation rate is expected to remain manageable in the medium term amidst a stable outlook for the Rupiah. The overall economy is well-positioned to benefit from the positive political landscape as the re-election of President Yudhoyono coupled with the appointment of technocrats to the cabinet is expected to ensure continuity of economic reforms. Outlook for The Indonesian Market Indonesia’s stockmarket is the third largest among ASEAN countries with a market capitalisation of US$261 billion as at 30 June 2010. After registering a 114.7 percent return in Ringgit terms for 2009, the Jakarta Composite Index continued to be one of the best performing regional markets with a gain of 17.5 percent on a year-to-date basis to 28 July 2010 amidst robust economic activities. From 2006 to the 28 July of 2010, the Jakarta Composite Index registered a total return of 143 percent in Ringgit terms (163 percent in Rupiah terms) or a commendable annualized return of 21.4 percent. In terms of valuations, the prospective Price-to-Earnings (P/E) ratio of the Jakarta Composite Index (JCI) is 15.2x based on 2010 earnings and 12.7x based on 2011 earnings as at 28 July 2010, which is comparable to its 9-year average P/E ratio of 12.5x. Selected stocks listed on the Indonesia market are supported by strong corporate balance sheets, sound fundamentals and fair valuations. 1 ASEAN countries excluding Vietnam: Malaysia, Singapore, Thailand and Philippines 2 World Bank 3 Bank Indonesia 4 Bloomberg Consensus Forecast, July 2010 5 Bloomberg Consensus Forecast, August 2010 You are advised to read and understand the contents of the Prospectus of Public Indonesia Select Fund dated 1 September 2010 before investing. The prospectus has been registered with the Securities Commission who takes no responsibility for its contents, and neither should its registration be interpreted to mean that the Commission recommends the investment. You should note that there are fees and charges involved; and that the prices of units and distribution payable, if any, may go down as well as up. Past performance of a fund is not an indication of its future performance. Applications to purchase units must come in the form of a duly completed application form referred to in and accompanying the prospectus. A copy of the prospectus can be obtained from your unit trust consultant or nearest Public Mutual branch.

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A good investor will always see chance. A good investor will also be prepared.