Here’s the short answer: no.
You should not remain in 100% stocks for your entire career.
For the longer answer, you’ll have to read the whole piece – and no, the answer isn’t because I believe typical people can “time the market”.
Should you invest 100% in stocks?
Playing 100 percent stocks
You can simply invest in index-based exchange traded funds, tied to the S&P 500. There’s no need to get involved in stock picking strategies, or even moving into sector funds. As long as the economy continues to grow over the long-term, which is the clear trend, stocks should benefit.
Should you put all your money in stocks?
One should never invest all the money in stock market; however high your risk appetite be. The most successful method of investment is diversified investment, which balances risk of investment. Various investment options like mutual funds, bonds, Bank deposits, equity shares, debentures, SIPs and ETFs etc.
How much of my money should be in stocks?
A general rule of thumb that I use is to subtract your age from 110 to determine how much of your portfolio should be invested in stocks, with the rest invested in bonds. For example, if you’re 35 years old, this implies that 75% of your investments should be in stocks and 25% in bonds.
What happens if you lose money in stocks?
Due to the way stocks are traded, investors can lose quite a bit of money if they don’t understand how fluctuating share prices affect their wealth. For example, suppose an investor buys 1,000 shares in a company for a total of $1,000. Due to a stock market crash, the price of the shares drops 75%.