Should Investors Be Stashing Cash Right Now?
The stock market has reached a fever pitch, leading a lot of people to worry that a crash is coming. Spoiler: Another stock market crash is inevitable, and it's completely normal. On average, the stock market undergoes a correction (defined as a drop of 10% or more) about once every two years.
You may be tempted to hoard cash in order to prepare. But typically, dollar-cost averaging is the strategy that produces the best results for investors. Basically, you budget a certain amount to invest each week or each month and invest regardless of what's happening in the stock market. Over time, this tends to lower your investment costs.
But there are a few times it makes sense to prepare for a bear market by hoarding cash. Here are three examples.
Source Fool.com
