If you have been a bear on stocks for 2012 your year has probably been filled with lots of anxiety and nervousness about the continued increase in the global financial markets. Now that we are approaching multi-year highs in the S&P 500 everyone is coming out of the woodwork to call a top and alert everyone to plan for a correction. History often reminds us that when everyone starts to expect a sell-off to happen it often never materializes.
It is important to remember that the markets can remain irrational for longer than most can remain solvent. The moral of the story is that it is very difficult to try and time the top of any market, let alone one that continues to slowly move higher along the way. This type of market never really shows characteristics of being overbought, thus making it extremely difficult to time.
Past performance is no guarantee of future results.
The S&P 500 is an unmanaged index. Investors cannot invest directly in an index.
Eric Marvin, CFP®, CRPC®
JPT030212-342
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.