On March 9, 2009, all of the Wall Street gurus agreed that this was the first day of our current bull market. We had just came out of one of the worst financial meltdowns, and now America was ready for a strong bull market run. The DOW JONES closed that day at 6,547 points and has been going strong ever since. There’s no doubt it has been a robust bull market, there’s no doubt it has turned many average Americans into millionaires, there’s no doubt that many Americans are enjoying a wonderful lifestyle and retirement based on this current bull run.
On August 22, 2018, will be the date that Wall Street confirms we are now in the longest bull market run in American history. Yes, you heard me correctly the longest bull market run in American history. The DOW JONES is currently at 25,822 points as of 8/21/2018, that’s over a 400 percent return. That kind of run is unheard of. Time to open that bottle of champagne, make some noise to celebrate this monuments event, or is it?
One thing I know for sure is no matter how high you throw a ball into the air, at some point, it’s going to come down. Is the stock market any different? Has history taught us nothing? 2000 and 2008 does anyone remember those two years and the financial crisis we had to endure. Is it possible that the stock market may never have a down year again, that it will just continue to rise and go up and up like that ball rising to the sky, sure anything is possible, maybe the Cleveland Browns football team will win the super bowl this year but is it probable? And I say NO it’s not likely and we should learn from history.
I tell my clients all the time that I would instead you get out of the stock market a year too early and possibly give up some gains, then get out a year to late and lose most of the gains you worked so hard to achieve. Maybe it’s time to take some of the winnings off the table and look for safer non-stock market alternatives designed to generate growth and income. You never want to be in a position to have to say to yourself, why didn’t I listen to my gut and not my head. Don’t follow the crowd and wait till it’s too late, as the saying goes. It’s better to be safe than sorry.