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Byline: David Saito-Chung
Surf in the middle of the night. Plant tulips in summer heat. Shop for Halloween costumes right before Christmas.
There's a right time to do pretty much anything, and a wrong time too. Buying stocks is no exception.
The right time to get in the market is when it's trending higher.
Fifth in a series
What does that mean? You buy stocks when the major averages are shooting higher like there's no tomorrow. The best time is when the market flashes a strong follow-through and high-quality stocks hit new highs (see Sept. 27 Corner).
When the market is trending lower, your best bet is to stay in cash. Most stocks follow the market's path. After the Nasdaq peaked in March 2000, seven out of 10 stocks on that exchange fell in the following 12 months. Their median loss? A painful 62%.