We are in the midst of witnessing a tremendous nine month rally on Wall Street. The S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average are all repeatedly settling at all-time peaks. In fact, the Dow crossed 22,000 last week; a place it has never been before. This is unchartered territory for all investors, including your 401(k)s and other investment accounts.
This is certainly quite a shock to many, especially after the election when a Trump win was supposed to cause the markets to turn sharply south. In fact, many market experts and news outlets predicted an absolute crash if Trump won the Presidency. Instead, the Dow is on a 4000 point jump since the election. That is extraordinary. Decades can go by without seeing a move like this. Even though there is a lot going on in the world right now besides the markets, this is a really difficult thing to ignore.
This kind of rally causes many questions and concerns. First, what is causing this rally, and why? Next, why isn’t everyone happy about this and why is there so much concern? Finally and maybe most importantly, this market run cannot last forever. So, how do you participate in it without the fear of taking a big hit when the overdue market correction finally comes?