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  1. #1

    Is the Market's Ascent Making You Nervous?

    Dear Morningstar.com Readers,
    U.S. equities are enjoying a spectacular run so far in 2013, with the S&P 500 gaining nearly 30% over the past 12 months and setting a record high on August 2.
    Are those gains making you nervous about equities' future prospects? And if so, are you taking any steps to reduce the risk in your portfolio? Perhaps you've rebalanced out of stocks, for example, or have shifted money toward equity holdings whose prospects you believe to be brighter?
    Please weigh in by posting in the thread below. I'll summarize your comments in an article that will run on Morningstar.com this coming Sunday, August 11.
    I look forward to hearing from you!
    Christine Benz

  2. #2
    I'm always nervous, but I'm just as worried about missing out if it continues to rise as I am about losing if it falls. Avoiding profits is a poor strategy.

  3. #3
    Not as much as the decent in bond funds with good managers.

  4. #4
    The combination of record US Stock indexes and the 2 major US governments (US Federal and CA State) enacting generally fiscally irresponsible and business hostile policy I am very concerned.
    My response is to keep my same 60% stock allocation, but shifting it from being very US heavy to more evenly balanced between US and foreign stocks.

  5. #5
    I believe the probabilities of a market downturn currently outweigh the probabilities of a continuing, uninterrupted market rise. Since I have exceeded my annual total return goal YTD, and in light of record market highs and rising RSI, I have reduced equity holdings to approximately 40% with an eye on capital preservation.
    Normally, I would reinvest into bonds, but have elected to simply hold cash with the spectre of rising interest rates/tapering looming over FI assets...
    I am patiently awaiting better opportunities to deploy cash into my 90 10 portfolio allocation targets.

  6. #6
    No. It doesn't make me nervous. Markets go up, markets go down. It's what they do.
    However, I do not expect it to continue to go up. If anything should have been learned recently it's that nothing marches upwards endlessly.
    The other thing I learned recently is that predictions are pointless, though, so take everyone's guess with a grain of salt (including mine).


 

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