The Bull Market Celebrates it's 5th Birthday

Five years ago, on March 9th, the stock market, hit bottom, after the financial crisis. That day the the

Dow

closed at just under

6,500

and the

S&P 500

ended at

676.5.

Since that date in 2009,  the Dow and the S&P 500 have more than doubled.

The big question out there is how much longer can this last?

Unless you have a way to predict the future, no one can give you an exact answer to this question. At this point we can only use what we know. Here is a quick summary of the 3 key reasons why being cautious may be a good idea:

  • The average bull market lasts 4.5 years, and only three of the 11 have made it past 5.
  • Investors leveraging their accounts on margin to invest money into the market. This is an example of investor euphoria, which typically is a sign of vulnerability.
  • If the Fed stops printing money soon, many believe the markets will fall to a value that’s more reflective of the current economy.

Have you taken the time to ensure that you have structured your portfolio to protect yourself if the markets don't keep heading in a positive direction?

Protecting your portfolio doesn't always mean that you have to miss out on potential gains; there are ways to protect your portfolio when the markets go down, and at the same time gain a reasonable amount of the upside when they do well.

Remember, you can always find the help you may need at Cornerstone Retirement Group by calling our office at (775)853-9033. 

Chris Abts