CHICAGO (CBS) — Monday of course is Labor Day, a holiday for the stock market.
But many investors are on edge given the recent volatility. So we checked in with CBS News Business Analyst Jill Schlesinger to see if the old “buy and hold” strategy still is best.
“The advice almost seems more sane after going through the last six months, and that is that timing the market is really hard to do. And if you actually had some luck in making one part of a transaction – maybe you sold in February – chances are you never know when to get back in,” Schlesinger said. “So I think that the last six months proves that sticking to the game plan – not reacting to the news cycle – is really beneficial to long-term investors.”
Meanwhile, interest rates are at zero and likely will be for a long time. That means bonds and bank accounts won’t pay investors enough to keep up with the cost of living.
“When the markets go up, it’s a lot of fun, but when we go down, it’s awful, and I understand where people just can’t stand it or don’t need to be investing,” Schlesinger said.
So you want to do something? Schlesinger said mark your calendar for Sept. 30.
“We’re going to come up to the end of the quarter. End of September will be end of the third quarter,” she said. “If you’re really worried, do me a favor – just go in and rebalance that portfolio.”