On the one hand, the 2020 market rally appears relentless, so each day you're on the sidelines is a day you're missing out on prospective gains. On the other hand, the S&P 500's 70% rebound from March's low feels overdone, setting the stage for profit-taking at any time. The S&P 500's year-to-date gain of 16% is a relatively typical full-year result that merely balances out the steep sell-off with the recovery. If that's what your gut is telling you, trust it. Just don't confuse what your gut is telling you about the short term with a long-term outlook.

Source: Daily Sun December 30, 2020 15:11 UTC