You Don't Have to Guess the Stock Market Bottom -- Here's Why
This year hasn't been a particularly positive one for the stock market, with the S&P 500 down 16% in 2022, despite climbing 11% since the start of October. After posting two years of great returns in 2020 and 2021, the market might just be taking a needed breather.
But the Federal Reserve, which is tasked with keeping unemployment low and prices stable, is partly to blame for the market's performance this year. Rising interest rates have made riskier assets, like growth tech stocks, unattractive. What's more, many are preparing for a possible recession, and in this scenario, why own stocks? Maybe it's best just to wait until the dust clears.
Predicting the market bottom might be tempting, but it's a virtually impossible task. Don't worry. You can still be a successful investor without being a market timer.
Source Fool.com
