Monday Money Tips (9/22/25) · InvestCEO with Kyle Henris

Monday Money Tips (9/22/25)

Last week, we highlighted the power of compound interest and why it’s never too late to start investing. This week we’re going to cover 5 common investing mistakes you’ll want to avoid right now.

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1.) Avoiding Investing Due To Uncertainty

There’s always something in the headlines that can make investors second-guess whether now is the “right” time to invest. Last year it was the election, this year it might be tariffs or job numbers, and next year it will be something else. The truth is, there will never be a perfect moment with zero uncertainty. If you wait on the sidelines for absolute clarity, you could be waiting forever and miss out while the market keeps moving. History shows that markets tend to rise over the long run, even with constant uncertainty in the background. (Check out one of the attached images that shows the S&P 500 Annual Returns from 1994-2023.)

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2.) Always Expecting “The Next Market Correction”

Some investors stay on the sidelines because they’re worried a recession or major market drop is right around the corner. It’s easy to let alarming headlines fuel that fear as news stories can spark short-term volatility, but the bigger risk is letting fear keep you from participating in long-term growth. By focusing too much on the negatives, investors can miss opportunities in what may actually be a relatively strong environment.

Right now, many U.S. companies are reporting better-than-expected earnings, analysts project S&P 500 profits to grow around 10% in 2025. That doesn’t mean a recession is impossible, but even if one does occur, history shows the market has always recovered, often starting to rebound before the downturn officially ends. The key is sticking to a well-thought-out plan instead of trying to time fear and headlines.

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3.) Waiting For Cheaper Valuations, But Missing Out On The Growth

US stocks have been strong over the past three years even with this year’s dip from the tariff scare in April. From August 2020 through August 2023, the S&P 500 gained more than 60%. After such a run, some investors worry the market is “too expensive” and consider selling out or waiting for cheaper valuations.

It’s true that forward P/E ratios (price divided by expected earnings) are above average, but that doesn’t necessarily mean poor returns ahead. Historically, valuations haven’t been reliable signals for when to buy or sell. While low valuations often precede stronger performance, high valuations usually still lead to modest (yet positive) returns, often better than bonds or short-term investments.

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4.) Holding Too Much In CDs or Short-Term Investments

Short-term CDs, Money Market Accounts, and High-Yield Savings Accounts have become popular in recent years as interest rates were climbing. They feel "safe" offering predictable cash flow, low default risk, and some cushion during market downturns. While those features are valuable, history shows that investors with a long-term time horizon have often been better served by including stocks in their portfolios.

The main drawback of short-term investments is limited growth potential. Stocks may be more volatile in the short run, but over decades they’ve consistently provided higher returns.

For investors with time on their side, a diversified mix of stocks usually provides a stronger path to growth than sitting in short-term vehicles for too long. Safety has its place, but growth is what ultimately moves you toward your goals.

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5.) Trying To Predict The Future

Scroll through the financial news and you’ll see no shortage of confident predictions—about the market, a sector, or even a single stock. Some investors even enjoy making their own forecasts, treating it like a puzzle that, if solved, reveals the big picture.

But here’s the catch: the future rarely plays out the way anyone predicts. And when it does, markets have usually already priced in the news. The investors who tend to do best aren’t the ones chasing the boldest headlines, they’re the ones sticking to a disciplined plan.

Instead of trying to guess the next big market move, focus on building a sensible, diversified strategy. Over time, that approach usually wins out over even the most convincing predictions.

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Poll Question: Which investing mistake have you experienced in the past?

Avoiding Investing Due To Uncertainty

Always Expecting “The Next Market Correction”

Waiting For Cheaper Valuations, But Missing Out On The Growth

Holding Too Much In CDs or Short-Term Investments

Trying To Predict The Future

20 votes

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