INDUSTRY INSIGHT
FINANCIAL FOCUS
SPONSORED CONTENT
Stampeding Bull Market
May Slow Down…So Be Prepared
A
s you know, we’ve been enjoying a long period of
steadily rising stock prices. Of course, this bull market
won’t last forever – and when it does start losing steam,
you, as an investor, need to be prepared.
Before we look at how you can ready yourself for a new phase
in the investment environment, let’s consider some facts about
the current situation:
• Length – This bull market, which began in 2009, is the second-
oldest in the past 100 years – and it’s about twice as long as the
average bull market.
• Strength – Since the start of this long rally, the stock market
has produced an average annualized gain of 15.5% per year.
While these figures are impressive, they aren’t necessarily
predictive – so how much longer can this bull market continue to
“stampede”? No one can say for sure, but there’s no mandatory
expiration date for bull markets – in fact, they don’t generally die
of old age, but typically expire either because of a recession or
the bursting of a bubble, such as the “dot.com” bubble of 2000 or
the housing bubble of 2007. And right now, most market experts
don’t see either event on the near-term horizon.
Still, this doesn’t mean you should necessarily expect an
uninterrupted streak of big gains. Some signs point to greater
market volatility and lower returns. To navigate this changing
landscape, think about these suggestions:
• Develop a strategy. You may want to work with a financial
professional to identify a strategy to cope with a more
turbulent investment atmosphere. Such a strategy can keep
you from overreacting to market downturns and possibly
even help you capitalize on short-term pullbacks. You could
invest systematically by putting the same amount of money
in the same investments each month. When prices go up, your
investment dollars will buy fewer shares, and when prices drop,
you’ll buy more shares. And the more shares you own, the
greater your potential for accumulation. However, this strategy,
sometimes known as dollar cost averaging, won’t guarantee a
profit or protect against all losses, and you need to be willing to
keep investing when share prices are declining.
During a raging bull market, it’s not all that hard for anyone to
invest successfully. But it becomes more challenging when the
inevitable volatility and market downturns appear. Making the
moves described above can help you keep moving toward your
goals – even when the “bull” has taken a breather.
This article was written by Edward Jones for use by your local
Edward Jones Financial Advisor.
• Consider rebalancing your portfolio. If appropriate, you
may want to rebalance your investment mix to ensure you
have a reasonable percentage of stocks – to help provide the
growth you need to achieve your goals – and enough fixed-
income vehicles, such as bonds, to help reduce your portfolio’s
vulnerability to market volatility and potential short-term
downturns.
• Look beyond U.S. borders. At any given time, U.S. stocks may
be doing well, while international stocks are slumping – and vice
versa. So, when volatility hits the U.S. markets – as it surely will, at
some time – you can help reduce the impact on your portfolio if
you also own some international equities. Keep in mind, though,
that international investments bring some specific risks, such as
currency fluctuations and foreign political and economic events.
Matt
Dudkowski,
AAMS®
Matt
Dudkowski,
AAMS® | Financial
Advisor | 1007 Mt Royal Blvd. Pittsburgh, PA 15223 | 412.487.3300
Financial Advisor
[email protected]
| www.edwardjones.com
.
Matt
Dudkowski
has been
1007
Mt Royal
Blvd a financial advisor with Edward Jones since 2002, serving individual investors in
the
Pittsburgh area
from
his Shaler Township office. In January of 2015, Dudkowski accepted an invitation
Pittsburgh,
PA
15223
to 412-487-3300
become a limited partner with the firm.
Since joining Edward Jones, Dudkowski has obtained the professional designation of AAMS®. Prior to Edward
Jones, Dudkowski, as a CPA, worked at the H.J. Heinz Company, and at Ernst & Young LLP.
He currently s erves on the board of directors for Keystone Wellness Programs, a local nonprofit organization.
A native of Butler County and a graduate of the University
of Notre Dame, Dudkowski resides in Gibsonia with his wife,
two sons and daughter.
Matt Dudkowski has been a financial advisor with Edward Jones since
2002, serving individual investors in the Pittsburgh area from his Shaler
Township office. In January of 2015, Dudkowski accepted an invitation to
PINE-RICHLAND
❘
SPRING 2018
11