If investing in the stock market makes you feel like a kid watching fireworks on the 4th of July, I completely understand. It is equally, if not more thrilling to watch the stock prices you’ve invested in soar. And, for investors it’s been a fun few years since the market has been steadily going in an upward direction. However, when stock prices begin to go in the opposite direction, it can get ugly!
The Market Attracts Thrill Seekers
If you are a fan of roller coasters, fireworks and are even a bit of an adrenaline junky, you’ve more than likely been enticed to put even more money into the market in the past 10 years. Most of my clients know how I feel about investing in the market. I do not believe in playing recklessly with my clients’ retirement funds. It is my number one objective to ensure that my clients have the most comfortable retirement possible.
As a financial advisor though, I do keep my eye on the market and its trends. The market always goes up and down. And, you know the expression, “what goes up must come down.” Nowhere is this truer than in the stock market.
Some Say The Market Has Peaked
While no one can accurately predict the market, some of the pros are starting to make predictions about an imminent downturn. According to CNN.com, some of the big money managers think that since the S&P 500 has quadrupled since its low point in 2009, that it has reached its peak. They seem to believe it can’t go any higher and will consequently begin to decline.
However, there are others who think the stocks won’t peak until 2019 or later. In fact, the CNN.com article says that, “Michael Hartnett, Bank of America Merrill Lynch's chief investment strategist… noted that while cash balances have risen, 39% of investors think stocks won't peak until 2019 or later.” https://money.cnn.com/2018/04/18/investing/stock-market-peak-dow-jones/index.html
Market Driven By Global Politics
The stock market is global and is driven by politics and world economics. So, as the world turns, and as political ties get shaky, the market reflects those conditions. There are worries of trade wars, trade restrictions amid waning economic optimism.
if you’re in it, be aware that many of the one who enjoys investing in the stock market. Maybe you have In the past few years, the market has been pretty exciting to say the least.
Too Many Variables
As far as I’m concerned, the market is subject to far too many variables to be a responsible place to invest my client’s retirement funds. In addition, there are an abundance of other vehicles that will provide income and the kind of lifestyle most retirees enjoy. There is no need to play roulette with retirement funds no matter how good the market looks.
Discover The Excitement Of Solid Financial Planning With Zero Obligation
At the end of the day, the thrill of fireworks and soaring market prices will come to an end. What replaces the short-lived excitement is usually a long-lived depression when one loses. If you would rather be safe than sorry, financially sound rather than living from month-to-month on your Social Security, give us a call. Invest one hour today for a Customer Care Needs Analysis discussion with zero obligation and discover how exciting having a solid, dependable retirement plan can be.
We make it our business to protect your retirement dreams. To each and every member of our team, there is nothing more thrilling!