Another gain in the books for the S&P 500, making it six in a row.
I wouldn’t say that is having your ducks in a row, but it certainly can’t hurt the value of your retirement account.
It goes without saying that the Magnificent 7 lead the way, but everyone is benefitting here at the end of the year.
Not to be Chicken Little, but you have to acknowledge that the multiples close to 30 are something to watch.
It makes no difference if the earnings remain high.
The problem I see is that many investors are buoyed by the belief in sooner than later rate cuts.
What I see are companies concerned about future sales dropping.
I give some of that short shrift as companies will be on the conservative side.
It seems that there is little that can stop this movement up.
You have all that is going on in the Middle East, Ukraine and China with little impact.
It is remarkable what positive attitude can do to markets.
Of course, this could change quickly, but it doesn’t seem possible until we get past the middle of January.
It does seem that one should at least take the time to evaluate your positions.
Taking a bit off the table just seems logical.
If it is in fact in your retirement account these profits will not be taxed.
I am not advocating selling everything but just taking a bit here and there.
The one thing I believe is that this will in fact turn.
I am more of the belief that rates will remain steady.
You have to understand that little or no one else of merit in the financial world believes such so take my thought with a grain of salt.
As I have stated before, there is no way to ignore the growing debt and lowering rates won’t solve that problem.
I do think that there is more of a gambling mentality in the market today.
That happens when there is a period of gains with little or no correction.
That is not what this is really all about.
It is about buying into companies that will grow earnings and sales.
You are actually a fractional owner - not unlike owning a local business, with much less exposure.
There are quality companies that may not touch the growth of the big tech stocks, but that make money quarter after quarter.
When the correction comes, and it will, these will suffer less.
All I know for sure is that opening up my brokerage statements is a real relief from opening up all those bills each month.
I know that completely sets my vintage, as yes, I still go down to the Post Office each day for the mail.
Technology has yet to take over my whole life.
But this acknowledgement is provided for your protection.
