Market strategist Kevin Mahn argues that long-term investors should avoid the pitfalls of market timing, noting that missing the market's best days can significantly erode returns.
Kevin Mahn advises staying invested in the S&P 500 despite pullbacks, viewing them as opportunities for long-term buy-and-hold investors.
Mahn says a 10-year Treasury yield above 5% would make him more concerned about the economic backdrop, but he does not predict a specific direction.
Oil above $100 is noted as a current condition, and Mahn identifies a sustained move above $120 as a threshold that could pressure consumers and complicate Fed policy.
Kevin Mahn of Hennion & Walsh advises long-term investors to remain in the market despite current volatility driven by oil prices and interest rate concerns. He warns that attempting to time the market often leads to missing the best recovery days, suggesting instead that investors maintain diversified portfolios aligned with their risk tolerance.
Mahn argues that market timing requires two difficult decisions: when to exit and when to return. Historically, the market's strongest gains often follow its worst days, and missing these rebounds can severely impact long-term portfolio performance.
Mahn would become more concerned about the economic backdrop if oil prices sustained a move above $120 per barrel or if the 10-year Treasury yield rose above 5%, as these levels could pressure consumer spending and complicate Federal Reserve policy.