Tempted to Cash Out Investments During COVID-19? Ask Yourself These 3 Questions First
In March of 2020, the stock market hit a rough patch investors hadn't experienced in over a decade: a bear market. Bear markets are defined as periods when stocks lose 20% of their value or more, and while they do present investors with portfolio-building opportunities, they can also be worrisome.
Thankfully, the stock market has already recovered a large chunk of its losses from March, though stock values have yet to return to pre-pandemic levels. Meanwhile, millions of Americans are grappling with financial concerns as U.S. employment levels reach record highs and widespread economic recovery seems distant.
If you have money worries, or aren't feeling great about the state of the stock market, you may be tempted to unload some of your investments in the near term. That way, you can get some cash in hand to use in case your income gets cut, or another emergency arises. But before you do, ask yourself these critical questions.
Source Fool.com
