What Should You Do When the Market Reaches New Highs?Submitted by Green Financial Group on January 4th, 2018
Our market has made considerable gains recently, but that doesn’t mean you should try to time it. Let me tell you why.
What should you make of all the market highs we’ve seen lately?
2017 was a banner year for stocks—not just in the U.S., but around the world. There have been some great fundamentals, with corporate profit growth and economic gains both here and abroad.
Our economy experienced a 3.3% growth in GDP, which is the second consecutive quarter that has seen a growth of more than 3%. That’s the first time this has happened in three years. S&P profits have grown 8.4% over the previous year, and some analysts predict a double-digit growth in 2018.
When considering all of these strong gains and economic tailwinds, most investors will do one of two things—they’ll either throw more money into the market or sit on the sidelines.
Here’s my advice: timing the market is never a good idea. Leave that to the gamblers. This year alone, the S&P 500 has seen almost 60 new highs. That’s on top of a string of new highs we saw throughout 2013. If you sat on the sidelines the first time the market made a new high, you would have missed out on a whole bunch of new highs and gains that followed.
A new market high means one thing—it means the market closed higher on that day than it did the previous day. That’s it. It’s not necessarily a foreshadowing of an imminent downturn.
If you have any more questions about our market, feel free to give me a call or send me an email. I’d be glad to help you.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representatives of the U.S. Stock Market. One cannot invest directly in an index. Past performance does not guarantee future results.
Securities Offered through Raymond James Financial Services, Inc., Member FINRA/SIPC
Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc. Green Financial Group is not a registered broker/dealer and is independent of Raymond James Financial Services.
Raymond James Financial Services does not accept orders and/or instructions regarding your account by e-mail, voice mail, fax or any alternate method. Transactional details do not supersede normal trade confirmations or statements. E-mail sent through the Internet is not secure or confidential. Raymond James Financial Services reserves the right to monitor all e-mail.
Any information provided in this e-mail has been prepared from sources believed to be reliable, but is not guaranteed by Raymond James Financial Services and is not a complete summary or statement of all available data necessary for making an investment decision. Any information provided is for informational purposes only and does not constitute a recommendation. mond James Financial Services and its employees may own options, rights or warrants to purchase any of the securities mentioned in e-mail. This e-mail is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this message in error, please contact the sender immediately and delete the material from your computer.
To opt out of receiving future e-mail from us, please reply to this e-mail with the word “Unsubscribe” in the subject line.