Thursday, December 29, 2016

Is it a good time to invest new money? Or is it a time to be cautious?

First you need to ask yourself the following questions: What is my investment time horizon for any new lump sum of money? Do I need this money in the next few years or can I leave the money invested for at least 5-7 years?

If the answer is you need this money in the next 3-5 years, then you are better off putting the new money into fixed income instruments such as Savings account, a CD, Treasury or Corporate/Municipal bond earning 1% - 3% rather than investing in risky stocks.

Why am I saying this? Well, just look at the 20 year F.A.S.T Graphs S&P 500 stock market chart below:

Historical S&P 500 Price Chart  - Copyright 2017, F.A.S.T Graphs - All Rights Reserved