Concerned about the Bull Market

With more than a 350% increase in the markets since 2009 lows it’s easy to forget that it hasn’t always been a smooth ride.  

Over the past decade, we’ve experienced a significant bull market but we also experience six corrects during this time.  Now, all of these corrections were temporary and ranged from a 10% drop to more than a 33% drop during the March 2020 COVID-Crash.  

One thing that is interesting about all of these events is that none were predicted by Wall Street.  However, Wall Street did predict pullbacks that never occurred.  Corrections, Recessions, and Market Correction predictions are a dime a dozen.  Wall Street never seems to be able to predict the ones that actually happen.  

Talk about the Markets being overvalued has been happening for quite some time now and it is still being said today.   Forbes printed an article in August of 2020 stating that the Markets were overvalued by a whopping 77%.  That seems extreme to say the least.  The Market has now been up over 33%* since that time.  

Concern, Volatility, and horrible predictions are normal events of the Markets.  These even occur during bull markets.   This should not come as a surprise.

While it’s important to have a plan, it’s even more important that we stick to it.  Not making decisions based on the Financial News Headlines. This is the advice I’ve given our clients in the past and will continue to do so. 

* Source: Forbes, August 18, 2020. Performance based on S&P 500 Index from 8/18/20 – 8/29/21. Includes dividends reinvested. The Standard & Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. All indices are unmanaged and may not be invested into directly.  

The opinions voiced in this material are for general information only and are not intended to provide specific advice or

recommendations for any individual. All performance referenced is historical and is no guarantee of future results.