Should You Really Be Investing in the Stock Market Right Now?
It's been a bumpy ride in the stock market lately, and it has a lot of investors worried that their savings are about to take a beating. That's a scary thought, especially if we're talking about years of hard work that have gone into your retirement account. It would be silly to ignore some of the warning signs, but now's not the time to give up on the stock market. The evidence overwhelmingly suggests that a steady approach will result in the best long-term investment performance.
Withdrawing from the market right now would be a fear-driven act, and you should strive to remove emotion from your investment decisions. Fear and greed cloud your judgement. Instead, we can use actual data to make decisions.
It's completely sensible to have concerns about the market right now. Major indexes are just below all-time highs, and the strong returns over the past 18 months have made stocks expensive relative to earnings, cash flow, and dividends. Interest rates look set to rise within the next year, and we still haven't fully recovered from the economic impacts of COVID-19. There's a good argument that a correction is likely coming.
Source Fool.com
