Should Investors Be Stashing Cash Right Now?
On paper, investing is simple. Just look for a few great businesses, or, if you don't have time to research individual stocks, buy index funds. Then hold on for the long term as the power of compound growth works its magic.
Of course, things aren't always so simple. As we saw last year, the market can be incredibly unpredictable, which can create both dangers and opportunities for investors. At the same time, your financial needs will change throughout your life. In any given year, your unusual near-term expenses might include relocating, putting a down payment on a home, medical bills, or college tuition, among other things.
Last week, we saw some stock market volatility as long-term bond yields ticked upward, putting pressure on corporate valuations, especially among expensive growth stocks. With the major stock indexes near their all-time highs and several valuation indicators at historically high levels, is now the time to ditch stocks and stash cash in your brokerage account?
Source Fool.com
