Global Wealth Solutions LLC
  • Home
  • About
  • Services
  • Risk Assessment Quiz
  • Account Login
  • Resources
  • SMART 401K
  • Blog
  • Contact
  • Home
  • About
  • Services
  • Risk Assessment Quiz
  • Account Login
  • Resources
  • SMART 401K
  • Blog
  • Contact

What’s new in wealth management?

All the news that’s fit to print from global wealth solutions.

Is the Stock Market Euphoric?

2/17/2021

0 Comments

 
​When we consider past stock market cycles, there are occasions as noted in the graph of investor emotions, euphoria sneaks in.  Are we there now?  Hard to say, but it is a good time to look at how our 401k, Roth IRAs and other investment accounts are positioned.  How much is invested in stocks vs. bonds, International vs. Domestic and so forth.  
Picture
​As the stock market rises, our portfolios can automatically tilt towards risk, as bonds currently offer truly little total return, while stocks have risen over the past few years, as measured by the S&P 500 Index, and this throws off our target allocation.
 
One important question to ask ourselves:  How does the stock market value look today compared to history? 
 
Robert J. Shiller, Sterling Professor of Economics at Yale University, developed the CAPE Ratio to put a valuation measurement on the S&P 500 Index.  As of February 2021, that value measured 35.83, as seen in the graph below.  While this does not necessarily mean we sell everything and move to bonds or cash, it is prudent to look at the risk in our portfolios, versus our personal risk profile.   In addition, we may want another opinion in our portfolios, especially if we are within 5-7 years of retirement.
Picture
SOURCE: https://www.multpl.com/shiller-pe
TheInformedRetiree.com has a risk assessment quiz that takes about 3-5 minutes to complete.  It’s prudent about every 3 years to update your profile to make sure you’re investing based on your current risk profile.  Life and situations in our lives change, and we must adapt to them, even with our investments.  Click here to access the assessment profile.
 
If you would like to read my book, The Informed Retiree, visit my website www.TheInformedRetiree.com or send me an email to [email protected]
 
Also available on Amazon.com
 
Advisory services offered through J.W. Cole Advisors, Inc. (JWCA).  Global Wealth Solutions and JWCA are unaffiliated entities
0 Comments



Leave a Reply.

    Author

    Write something about yourself. No need to be fancy, just an overview.

    Archives

    November 2022
    August 2022
    June 2022
    February 2022
    December 2021
    November 2021
    August 2021
    April 2021
    March 2021
    February 2021
    September 2020
    March 2020
    January 2020

    Categories

    All

    RSS Feed

Picture
Global Wealth Solutions
5088 Corporate Exchange Blvd. SE, Suite 200
Grand Rapids, MI 49412 
Ph. (616) 69
8-9844 OR (800) 870-0570
Fx. (616) 698-9870
Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). Global Wealth Solutions and JWC/JWCA are unaffiliated entities.​
Licensed Insurance Professional. 18292 - 2018/12/10

This is provided for informational purposes only and is not intended to provide specific tax or legal advice or serve as the basis for any financial decisions.  Be sure to speak with qualified professionals before making any decisions about your personal situation.


Check the background of an investment professional.
​

For a copy of JWCA’s Form CRS or JWCA’s disclosure Supplement, please click Here. By following the link, you consent to receipt of the Form CRS electronically.
​By following this link, you consent to receipt of the Form CRS electronically.

​Privacy Policy  |  FINRA: www.finra.org  |  SIPC: www.sipc.org  |  ADV  |  Mike Reinhart ADV Part 2B  |   Len Rhoades ADV Part 2B