Please ensure Javascript is enabled for purposes of website accessibility
Wall Street Keeps Hitting Records. What Do Investors Do Now?
gvw_ap_news
By Associated Press
Published 6 years ago on
April 24, 2019

Share

The S&P 500 just hit an all-time high, recovering from last year’s dramatic plunge. The economy seems to be on fairly solid footing, still it’s anyone’s guess what happens next for the stock market.
So what does this mean for the average investor? Here are answers to some questions about where stocks stand and what Wall Street experts think you should do next:
Q. The S&P is at an all-time high, should I be euphoric?
A. No. It’s fine to be pleased about hearty returns on your investments. But it’s not a good idea to tie your emotions closely to the ups and downs of the stock market. You’ll get tired fast. This market moment comes on the heels of last year’s nosedive. And it’s not the first or last time the stock market will make a dramatic move.

“The panic in the fourth quarter was based mostly on fears. The fundamentals have mostly held up, while the fears have gone away and the fears were based mostly on emotion.” — Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Company
Q. So what happened?
A. It’s more about what happened last year. The S&P 500 was at its last record high in the fall, then the market sank in the fourth quarter due in large part to growing fears of a recession, an escalating trade war between the U.S. and China and concern the Federal Reserve was moving too aggressively to raise interest rates.
Those concerns have largely been quelled. The U.S. and China are slowly moving toward a trade agreement. The Federal Reserve has indicated it likely will not raise rates at all in 2019 after seven recent increases. And those changes, along with some strong earnings reports and broader healthy economic indicators, have fueled some optimism in stock markets.
“The panic in the fourth quarter was based mostly on fears,” said Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Company. “The fundamentals have mostly held up, while the fears have gone away and the fears were based mostly on emotion.”
Q. Should I buy? Should I sell?
A. Maybe. It depends on what your long-term investment plan is. The best advice is usually the same no matter the day — determine your financial goals, make a plan to reach them and stick to it.
“I would encourage (investors) not to overreact to highs, just as I would encourage them not to overreact to the lows of December,” Schutte said.
All the same, there are some situations in which you should consider taking action. If you think you can’t live through another low like last year, the time to get out is now. If the balance of assets in your portfolio is out of whack thanks to the rise of the stock market, make adjustments. And if you need your money in the next five to 10 years, it shouldn’t be in stocks anyhow. But for most people, it’s also a good time to just leave things be.
Resist the urge to abandon the diversification of your portfolio, Schutte cautioned. It may be tempting to shed other investments that aren’t performing as well, such as some international stocks, but diversification is designed to help steady your performance over time.
Q. Will the rally last?
A. No one knows for sure. But David Bailin, chief investment officer at Citi Private Bank, expects the U.S. market could move up 5% to 7% more over the next nine to 12 months, provided the Fed doesn’t raise rates and earnings growth exceeds current expectations. We are in a late cycle market, a period when U.S. equities have historically done very well, but volatility also rises, he said.
“This phase can last six months to several years, but it’s important clients remain invested and not try to prematurely position for a contraction of the market,” Bailin said. “Doing so would risk missing out on important portfolio returns.”
Greg McBride, chief financial analyst at Bankrate, suggests people look at the big picture: The economy is solid, the labor market is tight and interest rates are low. But all the same, he urges people to be prepared for volatility and for returns to be harder-earned than what we’ve seen thus far in 2019.

DON'T MISS

Senate Rebukes Trump’s Tariffs as Some Republicans Vote to Halt Taxes on Canadian Imports

DON'T MISS

Supreme Court Sides With the FDA in Its Dispute Over Sweet-Flavored Vaping Products

DON'T MISS

Trump Announces Sweeping New Tariffs to Promote US Manufacturing, Risking Inflation and Trade Wars

DON'T MISS

Fresno Firefighters Save Dog From Canal and Now She’s Ready for Adoption

DON'T MISS

Big Brands Spend Just Enough on X to Avoid Musk’s ‘Naughty List’

DON'T MISS

Judge Dismisses Corruption Case Against New York City Mayor Eric Adams

DON'T MISS

State Center Trustees Render Split Decision on Future of PLAs

DON'T MISS

California’s Schools Chief Has a $200,000 Salary and a Side Gig

DON'T MISS

Why Project Labor Agreements Are Good for Our Schools and Students: Opinion

DON'T MISS

Trump Proposes Tax Deduction for Auto Loan Interest on US-Made Cars

UP NEXT

Western US Sees Sharp Increase in Extreme Weather Impact

UP NEXT

7-Year-Old Girl Was Killed by a Falling Boulder at a Lake Tahoe Ski Resort

UP NEXT

Elon Musk Reclaims Top Spot on Forbes’ Billionaires List

UP NEXT

Lakers Hold Off Rockets With 6 3-Pointers Apiece From Dorian Finney-Smith, Gabe Vincent

UP NEXT

Athletics Bat Boy Stewart Thalblum Takes Down Drone in Left Field

UP NEXT

NFL Postpones Tush Push Decision but Passes Other Rule Changes, AP Source Says

UP NEXT

March Madness: It’s South Carolina vs. Texas and UCLA vs. UConn in Women’s Final Four

UP NEXT

Major Layoffs Begin at Health Agencies That Track Disease and Regulate Food

UP NEXT

U.S. Bank Executive Terry Dolan Dies in Plane Crash Near Minneapolis

UP NEXT

Top Vaccine Official Resigns From FDA, Criticizes RFK Jr. for Promoting Misinformation, Lies

Fresno Firefighters Save Dog From Canal and Now She’s Ready for Adoption

15 hours ago

Big Brands Spend Just Enough on X to Avoid Musk’s ‘Naughty List’

15 hours ago

Judge Dismisses Corruption Case Against New York City Mayor Eric Adams

16 hours ago

State Center Trustees Render Split Decision on Future of PLAs

16 hours ago

California’s Schools Chief Has a $200,000 Salary and a Side Gig

16 hours ago

Why Project Labor Agreements Are Good for Our Schools and Students: Opinion

17 hours ago

Trump Proposes Tax Deduction for Auto Loan Interest on US-Made Cars

17 hours ago

Western US Sees Sharp Increase in Extreme Weather Impact

17 hours ago

Amazon Said to Make a Bid to Buy TikTok in the US

17 hours ago

Fresno Man Found Dead, Coroner’s Office Seeks Help Finding Family

17 hours ago

Senate Rebukes Trump’s Tariffs as Some Republicans Vote to Halt Taxes on Canadian Imports

WASHINGTON — The Senate passed a resolution Wednesday night that would thwart President Donald Trump’s ability to impose tariffs on Canada, ...

10 hours ago

Senate Minority Leader Chuck Schumer, D-N.Y., center, is joined from left by Sen. Tim Kaine, D-Va., Sen. Peter Welch, D-Vt., and Sen. Angela Alsobrooks, D-Md., as they speak to reporters about President Donald Trump's tariffs on foreign countries, at the Capitol, in Washington, Wednesday, April 2, 2025. (AP Photo/J. Scott Applewhite)
10 hours ago

Senate Rebukes Trump’s Tariffs as Some Republicans Vote to Halt Taxes on Canadian Imports

14 hours ago

Supreme Court Sides With the FDA in Its Dispute Over Sweet-Flavored Vaping Products

15 hours ago

Trump Announces Sweeping New Tariffs to Promote US Manufacturing, Risking Inflation and Trade Wars

A young Labrador mix rescued from a Fresno canal on Sunday, March 2, 2025, is thriving in a foster home after overcoming fear and trauma. (Instagram/Fresno Animal Center)
15 hours ago

Fresno Firefighters Save Dog From Canal and Now She’s Ready for Adoption

15 hours ago

Big Brands Spend Just Enough on X to Avoid Musk’s ‘Naughty List’

16 hours ago

Judge Dismisses Corruption Case Against New York City Mayor Eric Adams

16 hours ago

State Center Trustees Render Split Decision on Future of PLAs

16 hours ago

California’s Schools Chief Has a $200,000 Salary and a Side Gig

Help continue the work that gets you the news that matters most.

Search

Send this to a friend