It could last a while
How does this happen? Well, a rising market brings out a return of confidence. Confidence causes investors to start slowly buying. The buying buoys the market, and more investors get more confident, and the cycle continues. This can take years when things are working well. So, don’t worry if you miss the first part of the bull market. There is time if it is indeed a new market era.Anytime things are good in the market, the doom-and-gloom clan starts to get nervous and re-ups their dire warnings.
Suppose you are a fund manager who has 50 per cent in cash. We’re now halfway through the year and your fund might be nine percentage points behind the market. You’ve missed half of the S&P 500’s 22-per-cent year-to-date return, but picked up a couple of percentage points in interest income along the way.Article content
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