I have a lump sum I want to invest, which represents, let’s say, 50% of my savings. It’s currently in a money market account, while I try to convince myself not to time the market, and just throw it in a classic 3 fund portfolio.
It has been shown that lump sum investing is better than dollar cost averaging, and in general it is well regarded to be a bad strategy to think at all about timing the market. This is all well and good, but still it seems to be such a terrible time to do throw in a big chunk of money: the market is possibly overvalued by AI tech, the Trump administration is playing games with the economy trying to force short term gains, and many are predicting a recession to come.
Is it truly better for me to invest my lump sum now, any day, or is there any reason at all to, for example, keep a chunk aside in a money market or CD considering this may be a very weird time to invest most of my savings? One idea would be to see if the market substantially falls over the next few months, and invest it then.