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Is the "sequester" going to affect investments?
All I hear on the news is talk about the negative effects of the sequester and thought about what it could do to the stock market. All this at a time when I want to invest for the first time in a mutual fund (how convenient). How worried are you about your investments? and should I just hold out on a mutual fund for now? or just go through with it...
Thanks
1 Answer
- 8 years agoFavorite Answer
Meh, it's a grey area.
The sequester is definitely not the greatest for the economy because tax hikes always stunt economic growth; and investors realize that.
Then again, the sequester is a little ridiculous and highly played up. It's like if you were on a household budget of $1,000 per week, were $10,000 in debt, and you cut back about $10 a week on spending. And investors realize this, so the market isn't really freaking out over it.
I'm personally bearish on the market, for my own reasons.
Though mutual funds are the most successful as a long-term play (10-20 years) so if you're willing to stick it out that long you can buy into a good fund now and it would have little bearing on your overall return.
Or you can wait a few months and see how the market's doing before you buy a fund ;)
