It is hard not to be pleased with the performance of the market over the past year. After a severe dip at the start of the worldwide pandemic, we have seen a record-setting uphill climb that has led us to new highs. Despite gains, here at Blooming Tree Wealth Management, we are hearing a blend of excitement, caution, and fear in the tone of our clients in emails, calls, and visits.
It is hard to believe how well the market has performed over the past 12 months as we reach yet another S&P 500 high, and it is only natural to question if we can continue at this pace. Recently, the S&P 500 hit an all-time high for the 21st time in 2021. This marks the first time this had happened since 1998, which was shortly before the dot-com bubble began to burst.
When looking at your portfolio, you might be wondering if your glass is half full or half empty. Should you be bullish or bearish on the future? To answer briefly, yes!
Current market conditions are unprecedented – meaning the glass we have is unique, and there’s no way to really predict the unintended consequences of the recent stimulus. If you’re like us, it’s challenging to wrap your arms around how much a trillion is. Consider that in the 1970’s, a decade that saw inflation increase by an average annual rate over twice the long-term average, the money supply was increased by 4-5%. This year, to stimulate the economy, our money supply was increased by a staggering 25%. This increase has caused spending to rise, which has helped the market to not only recover losses endured in early 2020, but to continue setting new all-time highs in the market.
There has never been this much money put into our system at once. To offset spending, taxes will increase and there will be inflationary pressure, which leaves many consumers perplexed as to what the future might hold for them. Despite there being uncertainty as to the future of the market, we do know how to plan for uncertainty to protect your retirement income while taking advantage of potential gains. The best next step you can take is to educate yourself and explore whether the plan created to protect your future needs revising. Start by attending BTWM’s upcoming virtual event.
Market Update Event: “Is the Glass Half Full or Half Empty” Virtual Lunch on 4/30
On April 30, Blooming Tree Wealth Management will host a cost-free virtual lunch webinar. Led by BTWM’s Ryan O’Connell, the webinar will dive into the current state of the market and look at where we are headed. The webinar, titled “Is the Glass Half Full or Half Empty,” will include the following topics:
- Is the Glass Empty à What Do Current Valuations Portend for US Markets?
- Is the Glass Full à What Sectors/Regions are Likely to be Winners in the New Economy?
- How are Other Investors Staying in the Game? What Does a More Defensive Approach Look Like?
- Have a Game Plan and Execute it Consistently!
- Answering Your Questions
How to Join Us
We look forward to having you join us on April 30 for “Is the Glass Half Full or Half Empty.” There is no RSVP needed to attend, but we invite you to ask questions in advance of the event. Send questions to ryan.oconnell@bloomingtreewm.com, and Ryan will answer all questions during the final portion of the virtual meeting.
Join us from your computer, tablet, or smartphone through GoToMeeting. Simply use the following link at 12 PM Central on April 30: https://global.gotomeeting.com/join/216341981. If you are new to GoToMeeting, download the app in advance here: https://global.gotomeeting.com/install/216341981.
You can also join us using your phone. Call (646) 749-3122 and use access code 216-341-981.
We hope to see you on April 30!