The headlines last week declared that we’re now in a technical bull market. This was not expected, considering the dual challenges of inflation and higher interest rates. Will it last, and is it possible to predict when markets will rise or fall? The simple answer is no.
Of course, we’d all like to jump in at the lows and cash out at the highs—but if you stay out of the market completely to avoid the pain of temporary losses, it may also ensure you’ll miss the gain.
Historically, each downturn has been followed by an eventual upswing, although there is no guarantee that will always happen. Trying to avoid risk could itself be risky since it’s impossible to know when to get back into the market.
As the New York Times article below outlines, our perception of time can be distorted particularly because of all the technology surrounding us. However, as for investing, one thing remains tried and tested: staying invested patiently over the course of market ups and downs is the best way to pursue your long-term financial goals.
If you want to talk about what’s happening in the markets or anything relating to your portfolio, don’t hesitate to reach out. In the meantime, enjoy the articles.
This May Not Take as Long as You Think It Will
Why a Bull Market Is a Bad Time to Check Your 401(k)
Will Retirees’ Incomes Be Enough? It Depends On What You Count As Income.
The seven companies driving the US stock market rally
How Time Management Increases Efficiency And Saves You Money