Image Source: J.P. Morgan Asset Management
Hey gang, hope you had a wonderful 4th of July holiday with your friends and family.
So this week's post will be short but sweet. Every quarter, J.P. Morgan Asset Management comes out with their Guide to the Markets. The firm shares their insights via charts on stocks, bonds, and the U.S. economy. Their Insights are a must read for any investor, both individual and institutional.
Some charts from the guide strike my fancy, but one, in particular, stood out to me. It's the chart you see above. Right now, as I write, this is one of the longest bull markets I've participated in - ever!
Looking at the chart gives me a sense of both awe and fear. Awe in the sense that we've come a long way, baby, from 2008 when the stock market was in free-fall. Now, however, seems like every other trading day, the stock exchange in the U.S. is trending higher.
And I feel sorry for those of you who sold out of the markets when our Divider in Chief was elected. Bet you thought the stock market would go down and stay down, right?
I did, for all of a couple of days, before I came to my senses!
Trading on politics alone is a big mistake! There's no evidence that any trader has consistently made a profit by trading on who's elected President or voted into Congress.
Which brings me to my fear...
I see how long we've been in this bull market and I keep asking myself when are investors going to start saying NO! to our equity markets?
Please don't ask me because I have no idea!
All I do know is, at some point in the future, our stock market will come down. And when it does, don't be surprised that a downturn happened - we're long overdue! My fear is the violent nature of another decline in our stock market like the ones from 2008-2009.
I try to tamper down my fears, but it's hard, really hard, sometimes! What I try to do to quell my fears is remember why I invest and what my timeframe is - for retirement income 20 years down the road, if I'm so lucky!
And on that note, I hope you are, too!
Thanks for reading @ellofinance this weekend. And welcome to all the new followers - your time spent here is always appreciated!