100,000 sitting in cash that Best way to invest 25k in 2016’d like to invest. What’s the best way to do that in today’s market?
Given today’s gaseous stock valuations and concerns that this eight-and-a-half-year bull market might be getting a little long in the tooth, it’s understandable why many investors are skittish about investing money in stocks. So what should you do if you have new money to invest — whether it’s a hundred grand, ten grand or for that matter any amount — and you don’t want to give up stocks’ potential upside but you also don’t want to get hit with losses you can’t handle? The first is to try to time your entry into the market. So, for example, if you think this bull market still has room to run, you put your money into stocks, but stand ready to exit quickly when you’re convinced the market is about to tumble. This strategy sounds great, but the problem is pulling it off.
Since the market began its phenomenal surge back in early 2009 in the wake of the financial crisis, there have been many times when soothsayers suggested the stock market, like Humpty-Dumpty, was headed for a great fall. In 2011, the downgrading of the rating of U. Poor’s was expected to be the catalyst for a significant setback. Apparently, the stock market didn’t get the message because it continued to rise. That’s not to say that at some point, some prediction of its demise won’t be correct. We pretty much know the market will eventually hit a wall.