Successful real estate and business investor Michael Eisenga reveals his perspective on investment options in today's stock market.
Mike Eisenga, commercial real estate investor, entrepreneur, and proud father has years of experience in commercial real estate investing, property management, assisting living facility operation, leadership, strategic planning, public policy, and community outreach. Focusing more on his skills in investing and business, Eisenga talks about whether or not now is a good time to invest in the stock market.
No matter what is going on in the nation or world, attempting to time the market is always an impossible task to accomplish. After a global pandemic and a fluctuating economy, it is understandable why so many might be hesitant and even wary about investing in the stock market. In fact, tens of thousands of people search on Google monthly to attempt to find an answer to whether or not now is the time to invest in the stock market.
"If you are looking to start saving for retirement or long term goals of ten years or more, and doing so in increments such as monthly contributions, investing in the stock market is a good idea. Over the past one hundred years or so, the stock market has returned an average return of around ten percent," said Eisenga.
Compared to the average over the past several years, the markets are currently trading at a slightly higher multiple of price to earnings PE ratio. This observation indicates the market is somewhat overvalued. However, the stock market will always hold an unpredictable characteristic, and it is hard to gauge exactly what this will mean for investors. "Earnings of companies are growing, so perhaps that indicator will take care of itself," said Eisenga.
Current alternative investments are difficult to find as interest rates on bonds and CDs are still at record lows. People who possess a lump sum such as an inheritance or a payout of some sort should consider the strategy of investing equal increments of their money over a timeline of eighteen months to twenty-four months. This action is a safe investment move because if the markets drop or correct, an opportunity will open to buy shares at lower prices.
Eisenga says that the best way for many individuals to invest is to own ETFs or Exchange Traded Funds. ETFs are a basket of stocks tied to an index and a popular choice for both passive and active investors. ETFs usually carry drastically low fees of about .10 percent to .20 percent and will match closely to the index one selects.
Michael Eisenga is a successful commercial real estate investor with a banking and finance background and is the former mayor of the City of Columbus. As a President of both American Lending Solutions, a mortgage lending company (he founded and operated from 2000 to 2018), and First American Properties, he has a track record of creating and operating successful businesses. Mr. Eisenga is also devoted to property development and construction, primarily serving smaller local communities. Especially in the senior housing sector.