A smarter investing strategy for retirement

0
600

126936979.money

By Walter Updegrave

My plan is to wait for the crash and when things start looking better get back into the market to ride the rebound. Do you think this is a good idea? –Tim H.
If I thought you were able to predict when stocks will crash, when the market will hit bottom and when it will actually recover, then I’d say your plan is masterful, a sure-fire way to avoid losses, capitalize on gains and boost your long-term return. Unfortunately, your chances of doing all that range between zero and none. So I consider your idea a fantasy, not a bona fide plan.
The problem is that while it’s easy to identify market peaks in retrospect, it’s virtually impossible to call market tops in real time.
Back in late 1996, for example, when former Federal Reserve chairman Alan Greenspan delivered his famous “irrational exuberance” speech in the midst of the dot-com bubble, some investors interpreted his remarks as a not-so-veiled warning that stock valuations were stretched so thin that the market must be headed for a crash. And it was. Except that the crash didn’t come until more than three years later, a stretch during which stock prices more than doubled.
“Read the Full Article at money.cnn.com >>>>”

Author Details
G M
This is a general posting account for VT
ATTENTION READERS
Due to the nature of independent content, VT cannot guarantee content validity.
We ask you to Read Our Content Policy so a clear comprehension of VT's independent non-censored media is understood and given its proper place in the world of news, opinion and media.

All content is owned by author exclusively. Expressed opinions are NOT necessarily the views of VT, other authors, affiliates, advertisers, sponsors, partners or technicians. Some content may be satirical in nature. All images within are full responsibility of author and NOT VT.

About VT - Read Full Policy Notice - Comment Policy