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The stock market may be losing momentum. Is it time to sell?

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Your 401 (k) plan may have a better day.

Rapid increase in market risk Shares are in the red this week, with 30 Dow Jones Industrial Averages down more than 800 points, or 2.4%, on Monday. At the same time, the S & P 500 also fell 2.4%.

But while it’s unpleasant to see savings fall, you can regret selling.

“Pain is a sign that you are investing well,” he said. Alan RossFounder of Wealth Logic, a financial advisory firm located in Colorado Springs, Colorado.

He said that if you can’t stand a bad day, you will also lose a good day.

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Over the last 20 years or so, the S & P 500 has generated an average annual revenue of around 6%.

According to Charles Schwab’s analysis, if you are convinced that you should sell and later reinvest and miss the best 20 days in the market for that period, your return will be reduced to just 0.1%.

Rob Williams, Vice President of Financial Planning for Charles Schwab, said:

Over the years, the market has provided more than it needs.

Between 1900 and 2017, the average annual rate of return on stocks was around 11%. Steve Hanke, Professor of Applied Economics at Johns Hopkins University in Baltimore. Even after adjusting for inflation, its average annual rate of return was 8%.

As a result, financial advisors warn against making major changes to their investment strategies based on the decline over a period of time.

Another thing to keep in mind is that September tends to be a tough time for stocks. An average decrease of 0.4%.

But, of course, the market tends to recover as we approach October.

The stock market may be losing momentum. Is it time to sell?

Source link The stock market may be losing momentum. Is it time to sell?

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