“No. It goes back to the fact that they are very hard to predict,” Holeman says. “So rather than trying to time the market in general, you should stick with your long term strategy.”
Think about it this way: The average person lives to about age 85. If you start investing at 25, that means your lifespan as an investor will be about 60 years.
“Depending on whether you use five years or nine years for how long a bull market lasts, the average person will experience about six-to-10 bull markets throughout their investing life,” says Holeman. “They’re going to happen. They’re a part of everyday investing. Trying to alter your strategy or predict when one will start or end is going to end up causing you more headache and not really going to do anything great for you.”
In short: Don’t get overly excited when the market looks healthy, and remember that bad things aren’t always obvious when times are good. As investing legend Warren Buffett likes to say: “You only find out who is swimming naked when the tide goes out.”
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