The S&P 500 Is Reaching New Highs. History Says This Is the Riskiest Move Investors Could Make Right Now.
Trying to time the market by rapidly moving money in and out of stocks is a loser's game.
Overview
Earlier in August, the S&P 500 index (SNPINDEX: ^GSPC) reached new all-time highs. Despite the big gains that stockholders have seen in recent years, many investors are feeling nervous. There is sharp disagreement about whether major tech companies are spending too much on artificial intelligence (AI) infrastructure that might not pay off. Other investors worry about rising interest rates and lingering risks from the conflict in Iran.
Whatever you're worried about as a stock market investor, it's important to remember one key lesson from history: Selling stocks because you're afraid of a stock market downturn is usually a bad idea. Most of the time, for most people, timing the market doesn't work. If you're a long-term investor with a five- to 10-year or longer time horizon, it's better to just stay invested (and keep investing) through all kinds of ups and downs in the stock market.
Details
Let's take a closer look at why timing the market is a losing proposition, and learn what you should do with your money instead.
Source
Originally published at www.fool.com.