Quote:
Originally Posted by Aviator1211
Attempting to time the market is usually not a good idea. Full time professionals with extensive education who are paid to do that often fail. Best to choose a strategy based on your tolerance for risk and stick with it. If you want guidance, hire a Vanguard advisor. They are much lower cost than most advisors.
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Gigi:
If you are motivated to switch into cash for six months and then back into stock exposure, as you say, to time the market, studies indeed show that market timing is an ineffective investing strategy over the long run. In this case, you are implicitly forecasting that stock prices will fall during the next six months and then rise as you say that you would be moving back into stocks. No one knows. Ask 10 people about stock prices over the next six months and you will get 10 different answers (11 on TOTV).
If, however, you are very worried about the outlook and can’t sleep at night because of hearing lots of bad news, then this is good reason to talk with a competent and unbiased financial advisor soon. Such discussion will probably calm you in this case.