Broker Check

Markets Die on Euphoria

March 26, 2018

Trees don’t grow to the sky, but they can get pretty tall.

With much of the pessimism surrounding some of the recent 2018 stock market highs, I thought I would quote one of the greatest investors of the last 100 years, the late great Sir John Templeton:

So, when considering if we are at the end of this bull market, evaluate how much “euphoric” buying you have seen so far. Euphoria often signals the end of a bull market and the start of a longer-term bear market.  We don't believe this has happened yet in this market cycle.

Considering the low interest rate environment (slowly increasing due to a strong economy), tax cuts that may not be fully baked into 2018 company earnings, and 1.3 trillion dollars of infrastructure spending that's on its way, the markets do not look as overvalued as the media might lead you to believe.

Trees don’t grow forever and stocks don’t go straight up without pausing. Although market corrections may be uncomfortable, they are often healthy for our long-term investment success.

Call us if you would like a complete review of your asset allocation and investment holdings.  In the meantime, be patient, think long-term and keep the faith.




The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All indices are unmanaged and may not be invested into directly.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

Stock investing involves risk including loss of principal.