Bull stock market hits 9 years today
It’s a big day on Wall Street – the bull market’s ninth birthday. This is the second longest bull-run in history. And while the stock market has entered a period of volatility, there's no reason to believe the good times are about to end.
"Bull markets always end and nobody can predict when it's going to happen,” said Liz Weston, a personal finance columnist with NerdWallet. “A lot of people pretend they can, but the reality is nobody can time the market. Though we know it's coming, we don't know precisely when it's going to land."
Weston says it’s important to have a long-term investment plan that will serve you well when the markets are up and down.
"Make sure the asset allocations you have makes sense. The asset allocation is basically how you divide it up between stocks, bonds and cash and stick to that plan,” Weston said. “Don't let the markets panic you, because what happens is you sell and then you miss the run-up that inevitably happens."
Remember: If you need that money in the next year or two, it should not be invested in the stock market. You want less volatility and more liquidity. You don’t want to be forced to take a loss, which could happen if you're forced to sell when the stock market is down. That means this money should be in bonds or cash – certificates of deposit or a high-interest checking account.