Should I temporarily stop investing in my S & P 500 mutual fund?

Question

I contribute a certain dollar amount each month.

Answer 1

Why would you stop now when stocks are cheap? It's the best time to buy. Continue to invest the same amount each month, and you'll be buying more shares because the shares are cheaper. This is called "dollar cost averaging," and it's a proven discipline which works.

Answer 2

When the mutual fund is cheap...it signals a buy (if you think its going to go higher.)

Answer 3

No, because now your dollars are able to buy you more stocks because they are cheaper.  In the long-run, it's beneficial to invest more when the market is down and less when it's up.  Since we have no idea what the markets direction will be, its best to just do the same amount no matter what.

Answer 4

No way!!!

Answer 5

First off Kiker has no idea about investing.

Although I agree that an S&P 500 fund is not the best.  you should learn about "asset allocation" and divide your investments according to an allocation that meets your risk tolorence.

Check out:  Mutual Funds For Dummy's

Don't try to time the market! You'll miss some down turns but you'll miss the uptrends also......... it would be a big mistake.

Answer 6

depending on your situation, it may or may not be wise to stop your contributions.

for instance, if you have severely high medical bills currently, or have been laid off, the money would be better spent on keeping a roof over your head and food in your stomach.

however, if you have no extenuating circumstances, you should keep investing.  if i told you that on august first, you could sell either stock A or stock B for $50.00, but you could buy stock A for $30 today, and stock B for $49 today, which would you prefer?

it's the same thing when the market is going down - it lets you buy your investments for less than they should cost, which means that in the long run, you will make out better if you keep investing, even as the market goes down a bit.

Answer 7

YES!

This is an index linked fund, which bothers me to no end.  An Index was never, ever designed to beat the market...merely to mirror it and its trends/patterns.  So while it is a cheaper fund, you would be better off selling it and putting the money into an ETF that is not linked to an index that mirrors the whole market, like the S&P 500, rather a particular sector, like Energy, Emerging Markets, Natural Resources, etc.  Especially since some of these have been boasting upwards of 80% TTM returns.

Answer 8

depends....

Answer 9

no ...........

dollar cost averaging allows you to by more share when the market is down and less when it is up...........

steady and consistent..........