Your browser does not support JavaScript

Our Promise To You

We provide a comprehensive view of your financial life and all the factors that go into life planning. What this means to you is help with personal decision making and putting a date on things. We help you manage your finances and investments, while taking into consideration tax planning, professional moves, children, retirement, healthcare and other important priorities. It’s about life planning and gaining more comfort with your long-term financial security.
 

Blog & News

Are New Stock Market Highs a Concern?
Posted By: 
Wednesday, March 1, 2017

With many stock indexes such as the Dow Jones Industrial Average and the S&P 500 hitting new market highs, some investors may be nervous that the advances cannot continue. In our opinion, bull markets do not die of old age and the fact that a market is hitting a new high does not, in and of itself, provide a negative signal.

The chart below illustrates how market highs are not historically uncommon, and suggests that they can be sustained for long periods of time in the right economic environments.

Are New Stock Market Highs a Concern?

Source: J.P. Morgan Research

The chart illustrates that in many years new highs have been achieved 30-50 times a year and can continue for a full decade. In 1995, the stock market even hit a new high 77 different times. By comparison, since the economic recession in 2008 we have not hit record highs nearly as frequently.

If these market advances were accompanied by extraordinarily high valuations, this might create a concern. In the late 1990’s for example, Treasury Secretary Alan Greenspan coined the term “irrational exuberance,” which was his terminology for describing an overvalued stock market. At that time, in spite of companies reporting very low earnings, the markets advanced for several years. Eventually a market correction occurred from 2000-2002, but the markets advanced for several years prior to doing so.

Today, the market appears to be much different. Valuations are currently at reasonable levels, economic fundamentals continue to improve and recent earnings reports by companies have been relatively strong. Further, given that inflation is very low, the value of these earnings is not being diluted by the rising costs of goods and services. For these reasons amongst others, our expectation is that although short-term volatility may arise, the markets can continue to advance beyond today’s levels for some time.

About the Author: David Wilder

David D. Wilder CFP®, CTFA, MST, AIF®, CEPA – Principal & Chief Investment Officer As Chief Investment Officer, Dave chairs Total Wealth Planning’s Investment Policy Committee and leads and manages the investment management team. He is primarily responsible for investment research, preparing and communicating Total Wealth Planning’s economic and investment outlook. As Principal, Dave is responsible for investment advice, with extensive client contact and client-relationship management. He has a Master’s in Tax Law (MST) from Villanova University and is a CFP®, a Certified Trust and Financial Advisor (CTFA), and a Certified Exit Planning Advisor (CEPA).



 
 
Subscribe To Our Blog

Blog Categories

  • In the News
  • Business Owners
  • Charitable Planning
  • Client Experience
  • College Planning
  • Estate Planning
  • Executive Compensation
  • Firm Updates
  • Investments & Market Updates
    • 11/10/2020 - Growth triggers fee reductions
    • 10/14/2020 - Looking for Peace of Mind? Do
    • 10/07/2020 - Quarter 3, 2020 Market Review
    • 09/29/2020 - Why Investors Might Think Twic
    • 08/18/2020 - Ignoring Short-Term Oriented I
    • 08/11/2020 - Top 10 Reasons NOT to Invest i
    • 07/30/2020 - The Potential Hazard of Invest
    • 07/08/2020 - Quarter 2, 2020 Market Review
    • 04/06/2020 - Quarter 1, 2020 Market Review
    • 03/31/2020 - Humans Are Not Wired for Disci
    • 03/23/2020 - Market Update, March 23, 2020
    • 03/16/2020 - Market Update March 16, 2020
    • 03/11/2020 - Market Update March 11, 2020
    • 02/28/2020 - The "Health" of Your Portfolio
    • 01/08/2020 - Quarter 4, 2019 Market Review
    • 12/03/2019 - Less Cash in Your Portfolio Yi
    • 10/04/2019 - Quarter 3, 2019 Market Review
    • 07/05/2019 - Quarter 2, 2019 Market Review
    • 04/12/2019 - Quarter 1, 2019 Market Review
    • 04/11/2019 - Looking Beyond Average Investm
    • 03/12/2019 - Dimensional Fund Advisors – A
    • 01/24/2019 - 2019 Annual Limit Changes
    • 01/08/2019 - Quarter 4, 2018 Market Review
    • 12/12/2018 - Why Should You Diversify?
    • 10/29/2018 - Perspective on Recent Market V
    • 10/08/2018 - Quarter 3, 2018 Market Review
    • 08/08/2018 - E+R=O, your reactions determin
    • 07/06/2018 - Quarter 2, 2018 Market Review
    • 05/31/2018 - Bitcoin vs Gold
    • 04/09/2018 - Quarter 1, 2018 Market Review
    • 03/26/2018 - Another Tariff, Another Downtu
    • 02/07/2018 - Professor Jeremy Siegel @ Xavi
    • 01/05/2018 - Quarter 4, 2017 Market Review
    • 10/05/2017 - Quarter 3, 2017 Market Review
    • 07/14/2017 - What is Value Style investing,
    • 07/10/2017 - Quarter 2, 2017 Market Review
    • 05/24/2017 - Is Anyone Managing Your 401(k)
    • 04/05/2017 - Quarter 1, 2017 Market Review
    • 03/01/2017 - Are New Stock Market Highs a C
    • 01/05/2017 - Quarter 4, 2016 Market Review
  • Retirement Planning
  • Security & Privacy
  • Taxes
  • Financial Planning
 

INVESTMENT
MANAGEMENT

Our investment management process is focused on helping you maintain financial stability, preventing mistakes and accomplishing your investment objectives. We don’t just focus on market performance or predictions. We focus on what performance means and how it impacts your long-term goals. It starts with returns, but it is about making life decisions. Working together, you gain a degree of confidence when uncertain times come.

Learn More
 

RETIREMENT AND
TAX PLANNING

We help you determine how long to work and when to retire to continue your lifestyle. We analyze when and how to take money from your portfolio to replace your paycheck, with an eye on tax efficiency, spending, healthcare and social security maximization. We address the primary concern of having your money last for the rest of your life.




Learn More
 

HOLISTIC/COMPREHENSIVE
PLANNING

Our comprehensive planning focuses on real life. It’s putting a date to your goals and steering your life based on analysis, giving you choices and alternatives. You gain the ability to see how reachable your goals are. It starts with getting to know you and the way you want things done to fulfill your needs. We take into consideration your family and all the secondary factors that go into a comprehensive financial plan.


Learn More

WE'VE BEEN LISTENING
FOR OVER 30 YEARS

Total Wealth Planning’s team of Certified Financial Planners® are here to listen to you and your questions. We never want you to feel rushed. The real benefit is having a road map to help ensure the key elements of your financial life are in order.


Total Wealth Planning Associations
WE ARE PROUDLY ASSOCIATED WITH

CONTACT INFO


 

WHAT'S NEW AT TWP


       
CORPORATE EXECUTIVES

FAMILIES

PRE-RETIREES / RETIREES

BUSINESS OWNERS

DISCLOSURES
ECONOMIC OUTLOOK

BLOG & NEWS

VIDEO LIBRARY

FORM CRS
   
4665 Cornell Rd. Suite 160, Cincinnati, OH 45241 4665 Cornell Rd. Suite 160, Cincinnati, OH 45241
513-984-6696 513-984-6696
info@twpteam.com info@twpteam.com
2021 Annual Retirement Contribution Limit Changes
Wednesday, November 25, 2020


SEE MORE >

Follow us on Google+
Blog & News
Follow us on Twitter
Find us on Facebook
DISCLOSURES | COPYRIGHT © 2020. TOTAL WEALTH PLANNING. ALL RIGHTS RESERVED.
GET STARTED
READY TO
GET STARTED?