The S&P 500 Had Its Worst July in a Decade. Should You Really Buy Stocks Now?
The S 500 (SNPINDEX: ^GSPC) roared higher in the first half of the year, reaching a record high and confirming the presence of a bull market. But it didn't stop there. The index went on to reach new highs multiple times and delivered one of its best first-half performances in the past 25 years. In fact, it was the fifth-best performance during that time period, a J.P. Morgan Wealth Management report shows. Technology stocks led the gains, signaling investors' interest in high-growth players -- and a certain renewed optimism about the market and the general economy.
But only a month into the second half, the picture looks somewhat different. The S 500 delivered its worst July in 10 years, gaining only 1.1%. This is a departure from historical trends since July tends to be a strong month for the stock market. Of course, part of this July movement could be nothing more than investors locking in profits on stocks that have soared in recent times. For example, market star Nvidia, which climbed nearly 150% in the first half, has slipped 13% so far in the second half.
Still, a weaker-than-expected jobs report last week weighed on investor sentiment -- and the Nasdaq even fell 10% from its record high, reached in early July. So now, you may be wondering if this is really the right time to start investing or add more stocks to your portfolio. Let's find out.
Source Fool.com
