The Buffet Challenge – A Million Dollar Bet
September 7, 2016Warren Buffett’s Take on Modern Portfolio Theory
May 19, 2017When Will the Bear Come Out of Hibernation?
Despite the turmoil out of Washington, the bull market is still climbing as of midday. Over the last few years, we’ve seen everything from Brexit, to rising interest rates and nothing seems to be slowing things down too much. Stocks continue to trade at a higher rate and perform in an overall positive manner, even reaching all-time highs. So the question most are asking is, when will the bear come out of hibernation?
Is the party over?
With the firing of FBI director, James Comey and the latest news of President Trump disclosing classified information to the Russians, we’ve seen a slight drop. However, even by the afternoon today, stocks began to regain, and nothing indicates things are about to spiral downward—at least not immediately. There are obvious concerns that stock prices “as quite high relative to standard measures.” However, is appears at the moment stocks will keep climbing at a slower rate at the very least.
How should I prep my portfolio?
Whether stocks continue up or drop here and there, the key is to stay the course and expect volatility.That’s how the market works. Focus on your long-term goals and not your short-term gains. If retirement is just around the corner, maybe it’s time to pull back a little, rebalance your portfolio to keep yourself on track. However, if you’re still a good ways out from retirement don’t be deterred by the markets erratic behavior. You have more time to play it riskier.
Another bear market around the corner?
While we can’t predict when the bear will rise from slumbering, with at least eight bear markets, since 1926, we can say it’s likely to happen at some point. Bear markets typically mean a 20 percent drop in stock prices for at least a two-month period. The good news—stocks usually recovered within about a year and went on to show significant gains.