Is Now the Time for Investors to Pull Money Out of S&P 500 Index Funds?
The S&P 500 is flying high, but how long the rally might last is questionable.
Overview
The S&P 500 (SNPINDEX: ^GSPC) hit a new record on Tuesday. All is well in the market, it seems, at least for now. However, as investors who have been following the market in recent years know, the mood can change swiftly and without much notice. Inflation, an increase in interest rates, or geopolitical issues could quickly cause the market to go back into a tailspin.
While tracking the S&P 500 through index funds has been an excellent move for investors in the long run, that may not prove to be the case when buying near or at the peak. The stock market has been running hot for multiple years. It has doubled since the start of 2023, when artificial intelligence and ChatGPT injected bullishness into the market.
Details
Normally, it takes seven years for the index to double, assuming it generates returns in line with its long-run average of 10%. Given how hot the rally has been over the past few years, is now the time for investors to consider pulling money out of S&P 500 index funds?
Source
Originally published at www.fool.com.