If a Market Correction Is Imminent, This Simple Strategy Is Key to Protecting Your Investments
Buy-and-hold investing is a tried-and-true way to earn stock market returns for long-term investors.
Overview
The past few years have been good for the stock market, but good times don't last forever. America hasn't had a big bear market since 2022. Some investors worry that the stock market is flashing warning signs. The S&P 500 (SNPINDEX: ^GSPC) Shiller CAPE ratio is nearing levels it hasn't reached since the dot-com bubble.
But even if a stock market correction is overdue, that doesn't mean most people should make big corrections to how they invest. If you're truly a long-term investor who can leave your money alone to grow for five to 10 years or more, one simple strategy is likely the best bet.
Details
That strategy is: Keep buying and holding a diversified portfolio of stocks. If you're like me, you're probably investing in stocks on every payday, out of every paycheck. Keep doing that. Keep buying stocks with dollar-cost averaging -- putting the same amount of cash into the stock market each month.
Source
Originally published at www.fool.com.
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