Record Bull Market Hits New High: What’s Next for Your Investments?

Photo by Andrey_Popov / Shutterstock.com

Tuesday was a very big day for the U.S. stock market.

The S&P 500 index hit an intraday record high of 2,873.23. The index — which includes 500 of the top companies in the U.S. and serves as a benchmark for measuring the overall performance of the stock market — couldn’t maintain those lofty heights. It ended the day at 2,862.96, short of a record closing.

As if soaring share prices weren’t enough reason to party, there was a little icing to add to the celebratory cake: On Tuesday, the stock market also tied the mark for the longest bull market run in recorded history.

Since bottoming out in the last bear market on March 9, 2009, stocks have risen more than 300 percent. If you had invested $10,000 that day, you would have roughly $40,000 today.

So for long-time investors, Tuesday felt awfully good.

Alas, after you popped the cork on your Champagne and gobbled down that cake, the sugar high probably slowly wore off. Then, an uneasy thought might have popped into your mind: What happens now?

The foggy future for investors

The truth is that nobody knows. Money Talks News founder Stacy Johnson humbly admitted this fact last June, when stocks were soaring:

I was convinced that a Donald Trump presidential victory would result in a market crash. (I certainly wasn’t alone.) Nonetheless, I didn’t sell a thing. As we all now know, the experts, myself included, were spectacularly wrong. When Trump was elected, the Dow was around 18,000. Now it’s 22,000, more than 20 percent higher.

More than a year later, the Dow Jones Industrial Average — an index that comprises 30 leading stocks — is even higher. It closed at 25,822.29 Tuesday, just 3 percent below a record high.

Record highs and aging bull markets often have been signs that the stock market is headed soon for a correction — defined as a fall of 10 percent — or “bear market,” a plunge of 20 percent in market value.

But there is just no way to know. Here is Stacy again:

Bottom line? Timing the market is a fool’s game. Trust me: Even when the next market move looks obvious, it isn’t. And even if you do get out at the top, down the line you’ll be faced with another, equally difficult decision: when to buy back in.

So, for millions of investors, the best move right now is probably no move at all.

As Warren Buffett — arguably the greatest investor of all time — has said on numerous occasions, simply buying an index fund and holding it for the long run through thick and thin is probably the easiest and most certain way to accumulate wealth.

To quote the Oracle of Omaha: “Investors who avoid high and unnecessary costs and simply sit for an extended period with a collection of large, conservatively-financed American businesses will almost certainly do well.”

For more tips on investing, check out:

Do you plan to change your investment strategy now that the stock market is smashing records? Let us know why or why not by commenting below or on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
Beware These 3 Tax Penalties on Retirement Accounts

Protecting a nest egg is tough — but you can make the situation far worse with some boneheaded mistakes.

The Annuity Everyone Needs — and Anybody Can Get

This simple strategy can put more money in your pocket during retirement.

These Are the 10 Worst Cars for Depreciation

Two types of vehicles are especially likely to see steep plunges in value.

26 Work-From-Home Jobs That Pay $100,000

These lucrative gigs let you work in your slippers.

11 Small Money Moves That Will Make a Big Difference

These small money moves will pay off big in the long run.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
If You Find This Thrift Shopping, Buy It

Whether you resell it for a big profit or add it to your own wardrobe, this type of clothing is a hidden steal.

10 Things Frugal People Never Buy

If you’re a true tightwad, the mere thought of spending money on these items gives you the willies.

7 Social Security Benefits You May Be Overlooking

There’s more to Social Security than retirement benefits.

This Simple Mistake Might Weaken Your COVID-19 Vaccination

Avoid doing this before you get vaccinated.

10 Cars You Are Most Likely to Keep for 15 Years

The cars that owners hold onto the longest have one thing in common, a new study shows.

3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

The 6 Best Investing Apps for Beginners

If you’re looking to ease into investing in the coronavirus economy with just a little money, check out these easy-to-use tools.

7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

10 Deep Discounts Available on Amazon This Friday

These items are all steeply discounted — but the deals won’t last long.

11 Products Now in Short Supply Due to the Pandemic

Many goods we take for granted have become tough to find in 2021.

9 Things You Should Never Leave in a Car

Thinking of leaving these possessions in a car? Prepare for unexpected consequences.

13 Amazon Purchases We Are Loving Right Now

These practical products make everyday life a little easier.

9 Mistakes People Make When Cleaning With Vinegar

Cleaning with vinegar can save you a lot of money, but using it like this can cost you.

8 Things You Should Replace to Improve Your Life Today

Being frugal isn’t smart if you put off replacing these items.

7 Income Tax Breaks That Retirees Often Overlook

Did you realize all these tax credits and deductions exist — or that they apply to retirees?

10 Things Successful Retirees Do Differently

These habits and characteristics can help put you on the track to success.

7 Costly Health Problems That Strike After Age 50

As we age, our bodies wear down. Here is how to cut costs associated with some common ailments.

29 Purchases That Can Save You Money Every Day

Sometimes, you’ve got to spend to save.

14 Things You Should Stop Buying in 2021

These convenient household products come with hidden costs that you might not have considered.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.