The ‘New Normal’ Won’t Last

Stocks in the S&P 500 are at new, all-time highs. The push to this point hasn’t been really robust, though, as evidenced by the fact that year to date, SPX is only up 3.3%.

Still, we can’t deny the evidence that stocks have made the move to new highs, and that’s a good thing. What we can say, however, is that we shouldn’t fool ourselves into thinking that somehow this represents a “new normal” of sorts for the markets.

The fact is that financial markets go up, and financial markets go down. You already knew that, of course, but in this era of central bank-stimulated equity values, it’s easy to think that maybe the new normal is for markets to just keep grinding higher.

As we enter into a long, Memorial Day weekend, I want you to think about a couple of things.

First, think about the immense sacrifice on the part of the men and women who gave their lives for this country via their military service. Then, think about the freedom that we all have, which includes the freedom to do what we choose with our money.

In one tangential respect, making good choices with your money is a way of honoring those who paid the ultimate price for our freedom. I say that because it is incumbent upon us all to make good decisions in the best interest of ourselves, our families, our society and our country.

You see, when you invest wisely you are not just benefitting yourself. You also are benefitting everyone else, as the process enriches the entire world.

Of course, investing wisely isn’t always as easy as it seems. And when the new normal of persistently high equity values ends, that’s when you will really need to know how to properly manage your money.

If you have questions about how you can manage your portfolio more effectively, in both bull and bear markets, then my Successful ETF Investing newsletter can help.