Your Survival Guy

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Market Keeps Ripping Higher

By

By Leremy @ Shutterstock.com

You may have noticed it’s been a pretty good year for stocks. Good news, right? Well, it’s all good news until it’s not. With valuations this high, it’s important to gauge your future expectations.

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Case in point:

“When valuations were this high in 2004 and 1997, the next decade delivered after-inflation gains of 4.5% both times, despite enormous market crashes along the way,” writes James Mackintosh in the WSJ.

The question is, to me at least, how many stock investors were able to stick around and patiently stay invested when things got nasty?

What I want you to consider in the above quote is, how did you feel when the markets fell apart in the tech bust and the real estate crash?

Did you sell your stocks?

And if you didn’t sell, will you be able to do the same in the next crash?

At some point in your investing career, you need to ask yourself how much will stock gains improve your life?

And how much will stock losses ruin it?

Be honest with yourself.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.

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