If a New Bull Market Is Coming, Don't Make This Expensive Mistake
It's still too soon to officially say the bear market is over. It's not exactly a stretch, however, to suggest we may be nearer to its end than not. Last month's job growth was a phenomenal 517,000 jobs, and the Federal Reserve feels inflation is cooling enough to scale back last year's rapid pace of rate hikes. That's a solid starting point for a market recovery.
With that as the backdrop, there's one common but costly mistake too many investors make at the beginning of new bull markets. That is, waiting too long to see evidence that things are actually looking up.
It's easy to do, mind you. Even a slightly mistimed reentry can be painful, as stocks can suffer sizable losses very quickly following a bullish headfake. So, many investors think very defensively. It's far more comfortable to make sure the market's on the mend before plowing back in.
Source Fool.com
