The Motley Fool advises investors against market timing when S&P 500 nears record highs, advocating for long-term holding
The Motley Fool's analysis suggests that while the S&P 500 is close to its record high, leading to investor hesitation, historical data indicates stocks tend to continue rising even after reaching new peaks. Citing a 2024 DALBAR study, the article highlights that average investors often underperform the S&P 500 (9.9% average annual gains vs. 5.5% for typical equity investors over 20 years) due to attempts at market timing. The smartest strategy, therefore, is to avoid timing the market and instead focus on buying and holding stocks based on their fundamental value.
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