3 Questions Every Confident Investor Should Ask
The current bull market for stocks began on March 9, 2009. But the belief among some investors at that time was that stocks still had farther to fall, and the worst was still to come. They were wrong. Now, nearly 11 years later, we still have not seen another bear market in the S&P 500. This situation has created in the minds of some investors that stocks will continue to climb forever – a mistaken idea that could have dangerous consequences. When markets are flying high (or, conversely, when they’re sinking into oblivion), it can create a recency-bias mentality that may cause you to stray from your stated investing objectives. You may be tempted to make a risky move in response that you’ll later wish you hadn’t: a move that may be irreversible. Before you make a move like that, either out of fear or elation, you should ask yourself three important questions.