Up 17% Since June But Down 10% Since January, Is It Safe to Invest in the S&P 500 Right Now?
If you're a bit confused by the stock market right now, you're not alone. Back in January, a 23% sell-off seemed unthinkable to many investors, yet that's exactly what the S&P 500 (SNPINDEX: ^GSPC) had dished out by mid-June. Then, as of mid-June, a 17% rebound seemed impossible. But that's what the index has given us.
Clearly, multiple macroeconomic factors are creating a lot of volatility in the market as investors can't seem to come to a consensus on which direction the economy is heading. As such, remaining on the sidelines for the time being certainly feels like a smart idea (at least until the dust settles and there's more clarity regarding how things might be going).
But for investors with a true long-term attitude (planned holding periods of five years or more) toward investing, this line of thinking is not only unhelpful but can be outright detrimental to their portfolios.
Source Fool.com
