Worried About a Recession? Here's Why You Should Invest In the Stock Market
There's quite a bit of truth to the idea that time in the market matters more than timing the market. Since it's not possible to know what the future holds, fears of a recession shouldn't stop you from making periodic deposits to your investment accounts. As we'll discuss, if you're a long-term investor, the best thing you can do is to continue to invest -- even if the stock market tumbles in the short term.
Here, we'll discuss why you should keep investing even if you're experiencing a bit of stock market anxiety.
For investors nearing retirement, feeling nervous about a recession makes a ton of sense. They're nearing the point at which they'll need to withdraw from their portfolio, which can be problematic if their asset allocation is almost entirely stocks. A potential fix in this scenario is to adjust to an investment mix that isn't quite as volatile, like 30% stocks and 70% bonds, for example, rather than cashing out of the stock market entirely. Rash, emotional decision-making can cost thousands over the long haul -- even if it alleviates short-term worries.
Source Fool.com
