“Should I buy stocks now or wait for the market to fall further?”
This is a question many investors find themselves asking after periods of market volatility.
Buying too early and watching prices continue to fall can make some uneasy.
But waiting too long might mean missing a market recovery.
Why Investors Are Hesitating to Buy Stocks
The Straits Times Index (SGX: ^STI) had a great start this year.
It climbed steadily and reached a record of 5,801.96 on 4 September 2026.
Lately, however, it has been pulling back.
The STI has since fallen 8.6% from its record high, dropping to 5,303.82 on 2 November 2026.
Investors are becoming more cautious as uncertainty surrounding interest rates, economic growth and geopolitical tensions influences global markets.
Negative headlines can weaken investor confidence, and investors worry about buying just before a downturn.
When prices fall immediately following a purchase, investors may regret it, which prompts them to wait until market conditions appear more stable before buying again.
Waiting for that “perfect” price is challenging because markets are unpredictable.
Hesitating too long may lead to missed opportunities.
Three Reasons to Consider Buying Stocks Now
1. Market declines can create attractive valuations
Falling share prices can present opportunities to buy quality companies at more reasonable valuations.
The share price of DBS Group Holdings Ltd (SGX: D05) fell by approximately 16% in early April 2025.
This occurred despite DBS reporting a record net profit of S$11.4 billion for FY2024, an 11% year-on-year increase.
Investors should note that the market sell-off was primarily driven by macroeconomic conditions, including US tariff announcements, as well as a scheduled ex-dividend date on 7 April, rather than issues with the underlying business.
Look beyond share prices and analyse the company’s price-to-earnings (P/E) ratio, cash flow and long-term growth prospects.
2. Time in the market matters more than timing the market
Staying invested allows investors to enjoy growth and better returns as a result of compounding.
Investors who bought DBS shares just before the dip in April 2025 and held them until 30 October 2026 would have seen a nearly 60% capital gain.
Shares purchased on 1 April 2025 at S$45.62 each were worth S$73.13 on 30 October 2026.
3. Dividend investors can benefit from lower entry prices
If a company continues paying the same annual dividend while its share price declines, investors purchasing at the lower price receive a higher yield relative to their investment.
However, investors should prioritise dividend sustainability by assessing a company’s earnings, cash flow and payout ratio rather than being attracted solely to a high headline yield.
Three Reasons Why Waiting Might Make Sense
1. Stock valuations may still be expensive
A market decline does not automatically mean that stocks are cheap.
Investors should assess valuations using the P/E ratio and the price-to-book (P/B) ratio.
They should also consider future earnings expectations, as overly optimistic forecasts may already be reflected in share prices.
2. Corporate earnings could deteriorate
Slower economic growth, weaker consumer demand and rising operating costs can reduce profitability.
Find out whether the falling share prices reflect temporary market weakness or deeper structural problems.
3. Your financial circumstances may not support investing yet
Rather than asking “should I invest now?”, ask whether you can afford to.
Money required within the next few years for essential commitments is unsuitable for stock market investments since markets can experience significant fluctuations and may not recover in time when funds are needed.
Having a stable financial foundation helps investors avoid being forced to sell shares at unfavourable prices.
Buy Now or Wait: What Does History Tell Us?
Stock markets can recover surprisingly quickly after sharp declines.
The S&P 500 plunged approximately 34% from its February 2020 peak of 3,386.15 during the COVID-19 sell-off in March 2020.
However, on 18 August 2020, despite the ongoing pandemic, the index pushed past the February record to close at 3,389.78.
Investors who waited for complete certainty before returning to the market risked missing a significant portion of the rebound.
Still, neither buying now nor waiting guarantees better results, as the outcome depends on market movements and investment timing.
A Smarter Approach: Invest Gradually Instead of Guessing the Bottom
Dollar-cost averaging (DCA) involves investing a fixed amount at regular intervals, regardless of market movements.
The same investment amount buys more shares when share prices decrease.
This approach reduces the need to find an ideal time to buy, although it does not ensure profits.
Maintaining a cash reserve enables you to take advantage of opportunities during market declines.
Investors who have cash reserves can purchase shares when high-quality companies experience temporary price drops.
However, holding excessive cash indefinitely while waiting for the perfect buying opportunity can result in missed market gains.
Rather than attempting to predict short-term price movements, investors should prioritise quality companies with strong balance sheets.
Businesses with manageable debt, established competitive advantages and reliable earnings are better positioned to navigate economic uncertainty and downturns.
That said, even a financially strong company can be a poor investment if purchased at an excessive valuation.
What Should Singapore Investors Do Today?
Long-term investors may benefit from starting or continuing to invest during periods of market uncertainty.
Exchange-traded funds (ETFs) reduce reliance on individual stocks, providing exposure to a broad range of holdings.
Investors could consider adding established Singapore blue chips, such as DBS and Singapore Telecommunications Limited (SGX: Z74), better known as Singtel, as part of a diversified portfolio.
Income investors must assess whether companies can sustain their payouts over the long term.
Important indicators include payout ratios, operating cash flow, earnings consistency and debt levels.
A market correction may create opportunities to accumulate shares in established dividend-paying companies at lower prices.
Be cautious of unusually high yields, as these may reflect falling share prices or business health concerns.
Beginners or those uncomfortable with volatility may prefer a gradual investment approach with DCA.
DCA helps reduce the emotional pressure associated with market timing while allowing beginners to gain experience and confidence over time.
Diversification across different sectors and geographical markets is also important to reduce individual company risks.
Get Smart: Don’t Wait for the Perfect Moment
Rather than asking “is now a good time to buy stocks?”, ask whether your financial circumstances, investment objectives and the current market valuations support investing now.
Market declines can create opportunities, but not every falling stock is good value.
Investing gradually in quality businesses with DCA may be more practical than trying to predict the next market movement.
How do rich Singaporeans invest when volatility hits?
They turn to companies with cash, history, and discipline. This free report highlights 5 blue chips that deserve your attention. Get your copy here and see who made the list.
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Disclosure: Wenting A. does not own any of the stocks mentioned.
