If you follow the Wall Street gurus, most of them are gloom and doom at this point, much like the little boy with his finger stuck in the dam. “The Stock Market bubble is going to burst!” they all cry.
Ok, so maybe it will or maybe it won’t. But, let’s review a few facts about recent market history.
In 2000, we had the market run up because tech companies were all the rage with Y2K upon us. You could just about throw a dart at a chart and make money in the years leading up to 2000. But then we popped the champagne cork for New Years and… nothing happened. All the tech companies crashed and many were out of business just like that. We all know what happened in the market, a huge bear sat there for a few years, waiting.
Then around 2005 the housing market went crazy and everyone was buying and flipping houses until 2008 when the financial companies ran out of money to loan and triggered another crash. Many folks still have not recovered financially from that one!
somewhat stable over the years. But with “Quantitative Easing, we have injected a monkey wrench into the engine.
As long as the government is printing money and the rates remain low… it appears that the Stock Market is now the only option for where to put your money. Alas, this is the bubble that everyone is concerned about. While it may not happen right now, there will be an adjustment. It is coming, we just don’t know when, but we agree it will be a MAJOR adjustment.
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(Previous published in the May 2016 Edition of the American Retirement Advisor Newsletter)