6:05 am August 31, 2009, by Henry Unger
After a hot summer, is the stock market rally over?
Unfortunately, that’s exactly what some are now predicting.
Some of the analysts and investors who called a bottom in March, when the markets hit their worst levels in more than a decade, now say they are detecting a peak in share prices, the New York Times reported. And they warn that stocks could be headed for a sharp pullback.
What’s more, the Times writes, September is traditionally a poor month for stocks.
But the article does go on to point out that analysts can be wrong. Many of the country’s smartest investors got clobbered during the downturn last year, the Times writes. And betting against Wall Street’s momentum has not been a smart move lately.
So, what to do?
It’s not easy. But generally the best advice for long-term investors is to diversify, develop a thoughtful game plan and stick with it. Trying to time the market is a risky and often futile endeavor.
Studies have repeatedly shown that most stock market gains during a year happen in a fairly concentrated period of time. I’m not good enough to predict those 10 or 20 days out of 365.
In the AJC:
In other media:
Get inside Atlanta's and national business news and how it affects you.
Vacation stops, manage subscriptions and more