With Markets Reaching New Heights, What Should You Do?



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We are receiving  regular questions about the duration of the market run up and if markets are overvalued.  People ask, what should we do?  In almost every case, our advice is to stick with your plan.  If your investment portfolio is properly diversified and structured to achieve your long term goals, these sorts of upward movements are times to take advantage of the market’s historical long term trend, which is to rise.  Over the long haul, there will be more ups than downs, but there will certainly be times when you will see corrections or even bear markets, so be happy for the good times while they last. But don’t forget to follow your plan and stay within your risk tolerance.  Further, if you need liquidity in the short run, it might be wise to raise cash for your short term needs, rather than making those needs subject to market volatility.

As you might imagine, we follow a number of resources in trying to keep up with developments in the financial markets. Liz Ann Sonders is Chief Investment Strategist at Charles Schwab and one of our favorites.  If you are worried about the market being overvalued, a recent, market commentary by Liz Ann might help put your mind at ease with respect to the near term.  She’s calling the recent activity in the equity markets a “melt up” and suggests that it could continue for some time.  She cites stocks’ resilience to negative news, improving fundamentals and a broad based participation in the rally by all sectors of the market, calling it a “teflon market.” Those of you who are interested in more data and details can read the commentary here.

If you would like to discuss the market or your portfolios in more detail, we stand ready to help. Please feel free to call us.

Horizon Wealth Advisors is a Houston based fee-only wealth management firm. Horizon is a fiduciary advisor. We specialize in helping successful individuals and families understand, organize, and manage their often complex financial situations. Horizon offers integrated financial planning and investment management services.

Horizon Wealth Advisors
Horizon Wealth Advisors is a Houston-based, privately owned, fee-only financial advisor established in 1999. Our mission is to develop long-term relationships with thoughtful, successful individuals, families, and organizations by supporting and assisting them in achieving their financial goals.

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