Greetings! I hope that this finds you well and enjoying life.
I received a couple of calls last week from clients that were concerned about the effect that the crisis in Ukraine could have on our markets if it comes to war. Obviously there would likely be repercussions for markets worldwide, as there is anytime we experience global uncertainty.
I have been seeing a lot in the press in the last couple of weeks about the current value of the market. Historically we are in an interesting place in the current bull market. The current bull market recently grew to be classified as the fifth all time highest bull market in the history of the Dow Jones industrials, with the DOW up 151% since its’ bottom in March 2009. The other four bull markets time sequence and values were as follow approximately:
– Five year duration up 240% from bottom ended August 1982.
– Thirteen year duration up 350% from bottom ended June 1949.
– Nine year duration up 390% from bottom ended October 1990.
– Nine and a half year duration up 500% from bottom ended August 1921.
Bull markets come and bull markets go. We may be at the onset of a huge run or at the end of the smallest in the top five all time. We live in a world in which we constantly experience events like Ukraine that may have a big effect on investor confidence, thereby affecting the rise and fall of the markets. The big issue is not the rise and the fall of markets or current events. The big issue as relates to managing retirement resources, has do with the appropriateness of your portfolio based on who you are. I like to refer to it as investor identity. In other words do you own appropriate types and amounts of investments that match your personal, specific, objectives and goals? Are you comfortable with the risk that you are taking and are exposed to? Are you structured in such a way to where you can put it to bed, regardless of market fluctuations or
current events? The #1 fundamental to effective investing is that what you are doing matches who you are. There is a lot that goes into the process of determining and establishing your investor identity and it is key to success in retirement finances.
If you have questions about this or feel we may be able to help in any way don’t hesitate to call.