Time To Go To Cash?
It’s early Wednesday morning as I get ready to fly back to Philly. With the Fed set to make an announcement later today, this column may be old news by the time you read this.
Never the less, it has not only been a few tough weeks in the market, but it has been a few tough months since the markets hit their highs in mid-May. The Dow is down 4.9% since its May 19th high while the S&P is off 1.9% since its high on May 20th.
What’s been causing the drag on the markets? Pick your poison. Iran, Greece, China’s stock market, our budget deficits, the increasing value of the dollar or no growth in wages could all be part of the problem. Could it be fear about the Fed raising interest rates? What about a slowdown in the growth of corporate profits? Who knows?
Here is what I can tell you. If you are a short term market spectator then you might want to go to cash. However, if you are a long term investor, and can stomach the ups and down of the market, stay put. The worst thing you can do is to become a market timer. Few are successful.