As the bull market enters a new year, investors exhibit caution due to high valuations and uncertainties like tariffs and the DeepSeek AI impact. Market dips are seen as buying opportunities, but timing corrections in the market is fraught with difficulty. Instead of reallocating, investors should focus on maintaining portfolio allocations that align with their risk tolerance. For example, if holding stocks like Palantir has become overly significant, taking profits may be wise, despite market predictions. In terms of asset allocation, gold is safer but stocks offer better long-term returns.
It's no mystery why some investors feel a bit nervous as the bull run goes into a new year.
Predicting the stock market's next move will be a far more difficult feat than predicting the weather.
Investors shouldn't reallocate funds in their portfolio with the exception of a specific market event.
Gold may be relatively safe compared to stocks, but neither asset is completely safe.
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