Today, after the stock market has gone straight up for five years, investors are faced with two extremes: Go into cash and wait for the market crash or a correction and then go all in at the bottom, or else ride this bull with both feet in the stirrups, but try to jump off before it rolls over on you, no matter how quickly that happens.
Of course, both options are really nonoptions. Tops and bottoms are only obvious in the rearview mirror. You may feel you can time the market, but I honestly don’t know anyone who has done it more than once and turned it into a process. Psychology — those little gears spinning but not quite meshing in your so-called mind — will drive you insane.
One of my favorite contemporary investment writers, Vitaliy Katsenelson, has a piece posted at Institutional Investor magazine that makes some very important points about what is happening in the markets and how we should react (or not react) to it. The article will appear in two parts, part one is linked below.
I’ll send you over without any further adieu…