Домой United States USA — Financial The coronavirus pandemic shows how difficult it is to time the market

The coronavirus pandemic shows how difficult it is to time the market

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The recent stock market volatility can be painful for investors, especially those approaching retirement or another financial goal. But getting out isn’t the solution.
The results are in: You can’t time the market. If you have any doubts left about that fact, the coronavirus outbreak should put them to rest.
Except for a handful of scientists, no one saw the pandemic coming. What’s more, there’s little agreement over where it will take us. Some say life will soon return to normal, while others predict the global health crisis will give birth to a new way of living and, as a result, a new economy. We just don’t know.
And the stocks in your 401(k) retirement plan have been just as confused. At the moment, the market is rallying on some new optimism about a potential coronavirus vaccine. But what if that hope proves false? You can expect more declines.
The volatility can be painful, especially for those approaching retirement or another goal, like sending their child to college or gathering a down-payment on a house.
More from Personal Finance:Stashing cash? Savings interest rates sinkHow to make your money work harder in the coronavirus crashThese banks are offering coronavirus financial aid
Let’s say you had a $1 million portfolio, split between U.

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