There’s a laundry list of reasons to be cynical about the stock market this year: real estate, high-interest rates, government shutdown risks, and wars abroad.
Investor and personal finance author Ric Edelman believes it may be a practical strategy to take the chips off the table and focus instead on short-duration fixed income. Given the environment that we are in, a lot of conversations in the short-duration investment space are taking place.
This advice may be geared towards those looking to protect their net worth rather than growing it.
Historically, the stock market has returned about 10% per year. Market dips like these have traditionally provided long-term investors with the most gains - as they often create opportunities to purchase great companies at a discounted price compared to their fair value.