Interest rates, inflation, economic uncertainty, and stock market performance all play key roles in the decision-making process when it comes to investing. With share prices hovering near all-time highs, many investors are grappling with whether now is the right time to enter the market. While the uncertainty surrounding these factors might cause hesitation, the simple answer is yes — it’s still a good time to invest.

One key reason is that timing the market is incredibly challenging. Accurately predicting when stocks will rise or fall is nearly impossible, even for seasoned experts. History’s greatest investors, like Warren Buffett and Peter Lynch, have famously avoided trying to time the market. If these legendary investors avoid it, what evidence suggests it’s a smart approach?

Market trends and conditions, while important to monitor, don’t guarantee future outcomes. In fact, long-term investing strategies tend to yield better results when you start sooner rather than later. Investing now allows you to take advantage of compounding returns, which can be a powerful tool over time. The earlier you invest, the sooner those returns begin to accumulate, and the more they can work in your favour.

While stocks remain a good investment, other asset classes have also gained attention, particularly defensive investments such as fixed interest securities. For instance, secured first mortgage investments, which offered yields of 5-6% prior to the pandemic, are now offering returns of 8-9%. Similarly, term deposits, which were yielding less than 1% in late 2020, are now providing over 4%. Corporate credit investments have also seen a significant increase in yields, rising from 3% to over 8%. These higher returns mean investors are being better compensated for their capital, boosting cash flow and diversifying portfolios.

On the property side of things, rising interest rates and lower occupancy rates in certain sectors, such as office buildings, have impacted property values. However, these market conditions also present potential opportunities for savvy investors. Quality commercial properties may now be available at a discount, below their replacement cost. Investors who can take advantage of these conditions may benefit from rental yields, while potentially acquiring assets at a lower price.

If you don’t already have an investment strategy, now is a good time to develop one. A sound investment plan will help guide you through periods of uncertainty and volatility, ensuring that your financial goals remain on track. If you already have an investment strategy in place, it’s important to stick to it, making adjustments where necessary to stay aligned with your objectives.

One key aspect to focus on is maintaining an appropriate asset allocation — ensuring that your portfolio is balanced and aligned with your goals and risk tolerance. Market movements are unpredictable, and trying to forecast them with certainty is a fool’s errand, so the best approach is to stick with a disciplined strategy that positions you to succeed over the long term.

Building wealth is a long-term process that requires patience and commitment. The sooner you start investing, the more time you give your investments to grow and benefit from compounding returns. Whether you are investing in stocks, fixed interest, or commercial property, having a well-thought-out plan and staying disciplined will help you achieve your financial objectives over time.