Reaching a new high doesn’t mean the market will retreat. Stocks are priced to deliver a positive expected return for investors, so reaching record highs regularly is the outcome one would expect.
Global markets, in the last 12 months, performed strongly with our model portfolios made up of 40%-100% global stock up from 13% to 34% and a slight cooling in Q3.
Inflation is handled with a stock portfolio and for those with concern about the volatility of stocks, inflation hedges like TIPS (treasury inflation protected securities) are smart. (This is what we do.) As always an ongoing long term and short term rebalancing strategy is additive.
It's the time of the year when families are more likely to plan for their financial future. It's never too late to get a real written plan in place - but there are two important steps that must happen first.
