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Originally Posted by safari
I don't understand why people shouldn't invest when the interest rates are going up. Can you elaborate on this? The last few years the interest rates have been rising, while the stock market has been doing very well.
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It is just another example of why market timing is flawed. I've made plenty of money in the market over the past few years. Had I been sitting on the sidelines because rates were climbing, I would have missed out on thousands of dollars in gains.
argo, my advice is to ignore the market timers. Ignore the people who claim to know what the market is going to do and when it is going to do it. Jumping in and out of stocks based on season, interest rates, elections, etc. will ultimately cost you money in the form of transaction costs, taxes and lost potential gains.
I know there are those here who disagree, and I'm fine with that. I don't think you can go to any discussion on stocks without encountering some people who are convinced they've figured out a way to beat the system. I say forget trying to beat the system and just start investing over time with a long-term outlook.