Many are predicting a rough financial road ahead. And because of that, some will advise against investing in the stock market. This is a time to take pause and to really educate yourself before buying into all of the hype. Before stuffing your money under a mattress or halting investing, let’s look at things critically and get a good understanding of the stock market, so you can make informed decisions rather than those that are reactionary and emotional.
In today’s market, therefore, it seems like bonds would be something each investor would already have or would want to include in his or her portfolio, especially in light of today’s volatile stock market. However, the rising interest rates are driving bond prices down. What all of this amounts to is that we are in for some serious volatility in the market. But that should not cause us to pull out of the market. Being diversified is still the best thing for your portfolio.
The stock market is YOU. People are what fuels the companies and, in essence, are the market. Don’t buy into the fear. More importantly, if you start buying into the idea that the stock market will fail or even crash, you are betting against yourself.