By Craig Erwin, Ph.D.
Photo by Rommell Buenaflor on Pexels.com
The stock market is having a good 2024, setting record highs, thanks, in part, to an economy that just keeps humming along. You might feel like a genius, smart enough to invest in the stock market at a good time.
But what should you do now? The stock market has had a nice run, so is it best to keep riding the wave or to sell before the economy turns sour and the stock market crashes?
It’s a common (and often very costly) mistake to try to time the market; trying to get into the market when it is likely to rise and to get out when it is likely to fall. The problem is that even the experts find it almost impossible to time the market. What makes you think you can do it? And what if you are wrong; what if you get in and out at the wrong times? And what if you get out and then are too fearful to get back, maybe for years? These are ways to severely damage your investment returns.
So, what should you do? Invest as much as you can in the stock market each paycheck. Then just keep investing and never stop. Now, that is a great way to accumulate wealth.
So, don’t sabotage yourself. Save and invest regularly and just keep doing it. Don’t stop and start. Don’t think you can outsmart the market or other investors. Don’t pull your money out of the market when things look grim. Just keep saving and investing like clockwork. The easiest thing to do is also the smartest.
Are you sticking to a proven method, as you save and invest?
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