It really is possible to make a million by investing in FTSE 100 stocks, and you don’t have to be a genius to do it. You do need one thing, though. Time. If you have enough of it, and put it to good use, you really can build a million-pound portfolio.
Too many investors, especially novices, see investing in shares as a way to get rich quickly. They couldn’t be more wrong. The FTSE 100 is actually a get-rich-slow mechanism. Your wealth builds gradually, over time.
I’d say this is a very good time to invest
That is the first reason why I would say right now is a good time to buy FTSE 100 stocks. The sooner you start investing, the better your chances of making a sizeable sum.
Some will be tempted to hold off a little, until current volatility has passed. The problem is, how long do you wait? As I write this, the FTSE 100 stands at 6,158. Do you wait until it drops below 6,000? 5,500? 5,000?
You will drive yourself mad waiting for the index to hit the right level. Even if it does, you may still be reluctant to buy, in the hope it will fall further and you will pick up FTSE 100 shares at an even lower price.
The other danger is that it hits 6,500 or 7,000. If it does that, your buying opportunity will have gone, and you will be even further away from making a million. Or whatever your target.
The second reason I would say now is a good time to buy FTSE 100 stocks is that many top companies are currently trading at bargain valuations. Although the market has recovered by around 20%, it is still 20% lower than at the start of the year. So you are picking up shares at a discounted price.
I’d buy FTSE 100 stocks today
Now there are good reasons for that fall, of course. Covid-19 is a true black swan event. It has hammered FTSE 100 stocks and cast a shadow over the entire global economy. We do not know how long the recession will last, or whether we will be hit by a second wave of infections. Some top companies will struggle to recover.
At the same time, others will take the opportunity to cut out the fat and restructure. They may emerge stronger, leaner operations, and buy up weaker rivals at reduced prices. A recession throws up winners, as well as losers.
FTSE 100 shares tend to rise ahead of the recovery. If you wait until today’s uncertainty has passed, you will have missed the early stages of the stock market rebound. That is usually when investors make the fastest returns. Anybody who screwed up the courage to buy shares in late March (as Motley Fool was urging) have done well.
When is the best time to buy FTSE 100 stocks? If you are serious about making £1m, the answer is as soon as you can.
Then prepare to buy more.
