The bulls sure are running in 2013!

Did you know that this year:

  • Every single day the market has been up this year compared to where it ended last year.  That’s pretty amazing!
  • Did you also know that in the past 30 years, September and October have only been up 4 other times.  In other words, 5 years (this year and the other 4) out of 30 both September and October are up. Which works out to only 16.6% of the time! 

So what do you think this tells us about what may come in 2014?  Do you think the bull market will continue?  And if so, how long?

If we take a look back into history, this may help provide some guidance. Generally speaking, what one year does gives you no indication what the next year will do.  If this year is up or down, next year is still completely up in the air on where the coin will land. There is no correlation between market performance from one year to the next.

But interestingly enough, there may be a definite correlation between the last four times that September and October were both up.  The last time both September and October were up was, you guessed it, 2007.  How well did that work out for you in the following year, 2008?

Just because a bull market is running now does not mean that it will continue into next year.  It might, or it might not.  The more important question you should be asking yourself is simply this – how well protected are your hard-earned retirement assets if things start taking a noise dive?

If you are like most people, you really don’t know unless you’ve had your portfolio stress tested.  If you haven’t, why not give our office a call to see where you really stand?  After all, if markets continue their rise, you are fine.  But if markets turn on you, then it’s always a good idea to be prepared.

Chris Abts