You may have noticed that the stock market has been on a tear.
Earlier this month, the S&P 500 and Nasdaq each hit record highs.
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What’s affecting the stock market right now?
The stock market is basically a marketplace where you could buy and sell shares of a company.
However, there are a lot of other outside factors that are currently impacting the stock market’s performance.
The Dow Jones Industrial Index and Nasdaq composite jumped by 3.6% and 3%, respectively.
“It sees a pro-business environment with the new administration coming in.”
“When that uncertainty came off the table, it put some force behind the rally playing out.”
The day-after surge faded rather quickly when stocks took a tumble later that week.
But there were additional factors that likely influenced stock price fluctuations, including the Federal Reserve.
Yet stocks tumbled following the November rate cut and in anticipation of the most recent cut.
Investing in the stock market can be risky.
Butnotinvesting in stocks can also be risky.
Even a small amount from every paycheck can help you build a nest egg for retirement.
Here are some questions to ask to help you decide.
Do you have emergency savings?
The stock market goes up and down.
If you gotta cash out investments when they’re down, you could lose money.
That’s why building anemergency fundbefore you invest is typically recommended.
When do you need the money?
What is your risk tolerance?
What else is in your portfolio?
You typically don’t want all your money invested in the stock market.
