I just wanted to pass along this article from Forbes showing 23 different charts indicating he stock market may be heading for a fall. (CLICK HERE to read it)
Since the market lows of March 2009, the S&P 500 has nearly tripled. Although the market can continue to climb another 10-15%, at some point it will have to take a breather or perhaps suffer a big pullback. No market climbs forever.
Although the article may be calling for you to panic, I think caution is the more prudent course. I’m not crying “wolf” right now.
Although our firm’s private wealth managers (our “moderate” and “high” risk buckets) are nearly fully invested at this time, they are all ready to go to cash to avoid most of the market downturn and protect our client’s savings when it happens.
Because of this, we have just under $1 BILLION dollars invested with them now and that amount is growing by about $30 million a month.
That makes them VERY different than 95% of all mutual funds and low-cost 100% index funds who are prohibited by their prospectuses to ever go to all cash. With those investments, you get what the market gives you – on the way up… and especially on the way down.
Whether we eventually have a small correction or another big drop, investors in most mutual funds and ETFs are going to participate in the full drop.
Of course those clients invested in the “safe and secure” investment risk “bucket”, have no need to worry and will also benefit from the inevitable market rebound after the downturn.
http://www.forbes.com/sites/jessecolombo/2014/07/01/these-23-charts-prove-that-stocks-are-heading-for-a-devastating-crash/
Anyway, the article should give you some interesting food for thought.
all the very best… Mark
Mark J. Orr, CFP
Certified Financial Planner