trading backgroundAfter an asset class like equities enjoys an uptrend like we have recently experienced, we will frequently see the experts begin to come out with their predictions for the upcoming “bear market, crash, recession, or depression”.  Most will say that at some unknown time in the future, they will be right!  The market will, in fact, eventually go down and history states that the current bull market in equities is getting stretched. The trend will continue until the trend ends and trying to accurately guess the exact top is never easy.

Volatile markets or markets that move up and down two percent in a day are becoming more frequent. Since the early seventies, the number of days that the S&P 500 experienced a two percent or greater advance or decline has doubled. (source: Blackrock)

The average investor is full of hope on the days that the market goes up two percent and full of fear on the days that the market goes down two percent.

It is important to maintain a “shopping list” of assets when evaluating an entry point for assets that go on sale. It is also vital to maintain a sell discipline for investments as it is difficult to recover from a significant downtrend.

According to Forbes, the average length of bull markets since 1932 is 3.8 years. We are beyond that with the current bull market. Long-term investors who are investing for retirement know that a large correction in the market can be extremely damaging to a nest egg.

Contact us if you would like to discuss your financial goals with a Worth Asset Management Advisor and discuss strategies to protect your portfolio.

You have the right to ask questions and you have the right to be educated about your financial goals!

 

Keep in mind that past performance is not indicative of future results. In addition, there may be other Exchange Traded Products that offer exposure to the sectors mentioned and each has their unique perspectives and characteristics. It is important to determine if they are appropriate for your personal portfolio.

Disclosure: Worth Asset Management is a Registered Investment Adviser with the state of Texas. Jim Clark and/or his clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The comments and opinions offered herein are not personalized recommendations to buy, sell or hold securities.

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