I’ve been sitting on almost $ 200,000 in a money-market fund for several years waiting for “the big correction.” I’m getting antsy to invest this cash in a 50-50 mix of low-cost stock and bond index funds, but since I’ve waited this long I figure maybe I should hang on a bit longer in hopes of buying when stock prices are lower. Should I wait or invest now? What do you think? –C.R., Florida
I think it’s impossible to know in advance when it’s the best time to invest in stocks (or bonds, for that matter), and futile to pretend otherwise. We had a perfect example of this recently. A few days after Brexit, or British voters’ decision to leave the European Union, U.S. stocks plummeted more than 5% and many pundits predicted much worse was still to come. So what happened? Within three weeks the Standard & Poor’s 500 index rebounded and hit an all-time high.