As appeared in Independent Investor – February 2018
By now, you have probably received year-end statements for your investment accounts and retirement plan. If your investments include a large share of stocks or stock funds, the news was probably good. In fact, 2017 was a banner year for stocks in general. The S&P 500 increased by 19% for the year, the Dow Jones Industrial Average gained 25%, and the NASDAQ Composite increased an impressive 28%. Growth and value stocks both did well, while large, mid, and small cap indices all saw double-digit gains.1
This strong performance adds to an already solid bull run — the second longest in history. From the start of 2009 to the end of 2017, the Dow Jones Industrial Average increased approximately 180%, the S&P 500 almost 196%, and the NASDAQ Composite an impressive 338%.2
Market analysts are at odds as to where the market will go from here. But they do agree on one thing: such a run-up is likely to leave many a portfolio heavily weighted in stocks. For many, it could be a good time to rebalance.