We get asked this question all the time – but over the last few weeks, due to activities in The White House and general media coverage, it has become a mainstream topic of conversation. As I write this article we await word and understanding of what Trump’s ‘Liberation Day’ means to Irish exports, business, and jobs.
The short answer is – now is as good as any to invest. The real truth is there is no ideal time to invest and that can be a challenge to get your head around if you’re new to investing. It’s a common misconception that investing entails attempting to time the market. That you must be able to forecast the future in order to buy at low prices and sell at high prices. In reality, the reason the phrase about ‘time in the market, not time to market’ is so well worn, because investments need time and that can mean weathering a few storms along the way.
Consumer Sentiment and Economic Outlook
In March 2025, Irish consumer sentiment dropped to a nine-month low, influenced by concerns over potential U.S. tariffs on the European Union. The Credit Union Consumer Sentiment Index fell to 67.5 from 74.8 in February, significantly below the long-term average of 84.2.
Despite these concerns, the OECD projects robust economic activity for Ireland in 2025 and 2026, as inflationary pressures ease and financial conditions stabilize.
When it comes to investing, the most important consideration should be that you are comfortable with the fact that you’re committing your money longer-term, because nothing will help your investment more than room to grow. Keep in mind that past results are no guarantee of future results. Markets can go up and down, and there’s always the possibility of getting back less than you put in.
Time impacts investments in three main way of ways:
1. The earlier you can start investing allows the magic of compounding of investment returns to get to work.
2. The longer you then invest allows this compounding to really deliver over time. This is one of the big reasons why we encourage people to take a medium to long timeframe with their investments. Markets can be quite volatile over short periods of time, so investments held for longer periods tend to exhibit lower volatility than those held for shorter periods – another advantage of longer term investing.
3. Finally you will often hear us say that trying to guess the best time to either enter or exit markets is folly – none of us have a crystal ball. The key is to have a structured plan for your investments, and to then stick to the plan.
By definition, markets have no memories. So, trying to figure out when to get in and when to get out requires an investor to be right twice. You can make a knee-jerk decision to sell, but that raises an equally dicey proposition — when do you get back in?
Instead of reacting to each market gyration, we encourage investors to resist any momentary urge to try to time markets. One of the biggest challenges created by market corrections is that they are also far from straightforward.
Corrections can be over in two weeks, or it can take almost a year for a correction to eventually revert back to a bull market. To complicate matters, there is also a chance that a correction may turn into a bear market – a fundamentally-driven and sustained decline where the market dips 20% or more. In other words, the vast majority of corrections end up providing an opportunity for smart investors to take advantage of lower prices before a bull market continues its climb.
Markets are rarely a straight march forward.
Even though the end destination is usually a bullish one, markets often take a far more scenic route to get there. Sometimes that means going off the beaten path, and other times it may mean taking a step directly backwards to get reoriented.
In investing jargon, the latter situation can be described as a market correction: a short-term duration market move between -10% and -20%.
These are significant declines that can be a “gut check” for investors, especially for those who haven’t experienced many of them in their investing careers.
The clear takeaway here: A correlation exists between time invested and building a diversified portfolio’s value.
And that’s true whether you’re investing in small-cap stocks, which historically have provided greater upside potential (along with higher levels of risk), or more staid blue-chip stocks.
There is no proven way to time the market, whether you’re targeting the best days or moving to the sidelines to avoid the worst days. History shows that staying put through good times and bad is the best course of action.
Investment Considerations
Given the current landscape, potential investors should consider the following:
1. Risk Assessment: Evaluate personal risk tolerance and investment horizons. Property investments offer tangible assets but require significant capital and may lack liquidity. Stock investments provide liquidity but come with market volatility.
2. Diversification: A diversified portfolio can mitigate risks. Consider allocating investments across various asset classes, including property, equities, bonds, and alternative investments.
3. Market Timing: While the property market shows signs of continued appreciation, entering at peak prices may limit short-term gains. In the stock market, timing investments during market corrections can enhance potential returns.
4. Due Diligence: Conduct thorough research or consult financial advisors before making investment decisions. Analyse factors such as location for property investments and company fundamentals for stock investments.
5. Regulatory Environment: Stay informed about government policies and regulations that may impact investments, including tax incentives, interest rates, and housing policies.
Conclusion
Determining whether now is an opportune time to invest depends on individual financial goals, risk tolerance, and market understanding. The property market continues to exhibit strong demand amid supply constraints, suggesting potential for appreciation but also posing affordability challenges. The stock market’s positive performance indicates investor confidence but requires caution due to inherent volatility.
Engaging with financial professionals and staying informed about market developments are crucial steps in making sound investment decisions in the current Irish economic climate.