Tomorrow marks the end of President Trump’s first 100 days in office. How did he do?
There are three benchmarks most Americans use to judge how the market is doing - the Dow Jones, S&P 500, and Nasdaq - all three have posted record highs since Trump’s inauguration.
I had another financial advisor call me this week asking my opinion on how to invest in this market.
“I’m not sure what to do,” they said. “It makes me nervous to take on new clients and invest their dollars aggressively when the market is so high.”
The circumstances were tempting this advisor to time the market by investing conservatively right now and holding off until the market drops. But that could be a very long wait!
That investment strategy will fail you time and time again.
To put this in context, the longest recorded bull market lasted from December of 1987 through March of 2000 (when the tech bubble burst). Our current run would have to continue four more years, through June of 2021, to beat that record.
That means we could see a drop tomorrow or in five years.
We’re sitting on the top of a remarkable market right now, the second longest bull market in history. I regularly remind everyone who will listen that the market will drop at some point and that the correct time to prepare for that is today.
I can tell you with certainty that a downturn is coming, but nobody knows when the drop will happen. Not one person.
This weekend the media will look at every aspect of the President’s first months in office, it’s an exceptional time for you to honestly consider how ready you - and your finances - are for changes in the market.
Trump can boast 24 executive orders, 22 presidential memorandums, 20 proclamations, 28 bills. What will he do in the next 100 days?
You can flaunt your high returns because of this thriving market. But what will happen in the next 100 days or more?
If you haven’t prepared your investments for a drop in the market (whenever it may come), now is the time to do it!
Don’t just enjoy the growth we’ve been experiencing, make sure you have a plan you can feel confident in regardless of what the market does tomorrow.
While this ride is fun, long-term financial success is found in the valleys as much as the peaks of your journey. I regularly remind everyone that the market will drop at some point and that the correct time to prepare for that is today.