The stock market has recently reached an all-time high, and many people are looking at their brokerage accounts and celebrating. However, I wouldn’t pop the corks on those champagne bottles just yet. There’s a chance that this bubble is about to burst with a big stock market correction on the horizon.
A fifteen-year look back at the S&P 500 might shed a little light on why many financial professionals believe a correction is coming.
Notice any patterns? Each of these peaks in value was built on a market bubble. We had the “dot com” bubble in 2000-2001, and the sub-prime lending bubble in 2007-2008. Each of those bubbles burst and was followed by a sharp correction in the market.
So, the question is, why is the stock market so high now when so many other economic indication are performing so poorly? In other words, what is the media going to name this bubble?
Chief Investment Strategist and CEO of Fearless Wealth, R.C. Peck says that the “…Federal Reserve stimulus and government borrowing to meet its obligations are driving stocks to record highs on a daily basis,” and I tend to agree.
So, if the Fed’s policies are inflating the stock market, how long do you think it’ll be before this bubble bursts? And the big question…how far down do you think this correction will take us?
Here’s the good news…we can help you protect your retirement assets from another devastating market correction.
One option you might consider in order to protect your assets is a Fixed Index Annuity. The beauty of a Fixed Index annuity is that your principal is 100% protected against stock market losses. Plus, money in your Fixed Index Annuity grows tax-deferred, and your gains will lock in annually and will also be protected from loss.
Yes, the stock market has reached an all-time high, but now may not be the time to sit back and celebrate. Recent market performance may be nothing more than smoke and mirrors. Soon, this bubble may burst and a correction could be forthcoming. Don’t be one of millions watching your assets go “up in smoke”!
DeWitt & Dunn, LLC, Safe Money Talk Radio, and Women Money & Power.
Fixed index annuity and retirement income planning experts serving Dallas, Fort Worth, Arlington Texas.