Major US stock indexes hit record highs in November, and the flat yield curve eased recession fears.
The S&P 500 is up 27.5% this year so far and the Dow 22.8%. Technology stocks were up strongly in November, bringing the tech-heavy Nasdaq 100 Index up 33.8% for the year.
Foreign markets and more defensive stocks, like utilities or low-volatility stocks, lagged in November.
What comes next?
Despite last December’s brutal stock market rout, the final month of the year is typically a good one for stocks, so it may be only a matter of time before this bull market becomes the most profitable ever. It’s already one of the longest bull markets in history. There have been 12 bull markets post-World War II, and they’ve lasted around 60 months on average. This bull market, however, has run for 128 months, more than twice the average duration.
Even though stocks have good gains, many investors are nervous about what comes next, and many pundits are making their predictions about what 2020 might bring.
Forecasts can be entertaining, and even persuasive at times, but investing based on them can be hazardous to your wealth. Try to keep an open mind about 2020, and don’t get too attached to any one particular outlook.
Start 2020 prepared and ready
Instead of paying attention to market predictions, focus on getting your investment plans in order so you’ll start 2020 prepared and ready.
Working with an advisor can help you get a solid plan together, and studies find that people who work with an advisor have greater financial security, confidence, and clarity than those who go it alone.
Is it time for you to consider working with an advisor? Would financial planning help you feel more confident? Click below to set up a time to talk with a FundX advisor.