The past year has been very good for the stock market. The Dow posted a 5000 point gain in 2017 and is currently above 25,000. In addition, the Nasdaq and S&P 500 are at record highs. So far, it appears 2018 will be another good year as a rising GDP, increasing job numbers and the recent tax cuts could send the stock market to new highs. In the spirit of optimism as we begin this year, here is some step by step guidelines for investing in a good market.
Stick to your contribution plan. Continue or perhaps consider increasing contributions to a retirement or investment account. If you have been on the sidelines, now is a good time to get in the game. Make sure to...
Buy Investments that are in line with your goals and risk tolerance. The news and commercials will be filled with lots of ideas. Just because it sounds exciting does not mean it is for you. If the investment does not meet your needs, you don't need it. Which means...
Don't Get Greedy. This is easy to do. Every investor loves opening their monthly statement and seeing gains upon gains. However, it is important not to get carried away with the excitement. Don't suddenly invest in something "hot" in hopes of a “quick buck” based on word of mouth. Remember...
Quality Counts. There are good investments and bad investments. Don't buy stock in a company that is hemorrhaging red ink. In good economic times, some trash will hit the market. Also...
Don't forget your bonds. Bonds provide stability and regular income payments to a portfolio. These features will prove useful during market drops. Because...
Corrections and Sell Offs happen. A Market Correction is a 10% or drops in value. A Sell Off is selling an investment to take gains or in anticipation of something happening. These things occur during rising a time of markets, no matter what. Ride it out. Don’t Panic. It is important to...
Keep Your Account Balanced. Make sure you keep your investments in proportion to each other. Don't let one or two investments take over your portfolio. Consider taking gains to diversify your holdings. Always keep in mind...
Taxes, Taxes, Taxes. The new tax laws did not change with regards to capital gains taxes nor dividends. The rates are still the same. Consult a tax professional about any large sales of an investment.
The outlook going forward for the market and the economy is bright. An advisor can help you devise a strategy to make the most of the opportunity.
