In the shadow of the Dow Jones Industrial Average’s 27% runup over the past year, investors are understandably hesitant to plow into stocks as they tiptoe to new record highs. We’ve simply gone a little too long without a decent correction in the Dow Jones’ component stocks, and one could be in the offing with little to no warning.
This bull market never stops charging. Now in its ninth year, the current winning streak has delivered a 342% cumulative gain in Standard & Poor’s 500-stock index since its 2009 low. In 2017 alone, the Dow Jones industrial average has hit a new record closing high more than 40 times.
Stocks with long track records of annual dividend increases offer investors a sense of comfort. Shareholders can all but count on their income going on – and going up – year after year. With a little creativity, income investors can extend this sense of security to a month-by-month basis, as well.
Tech stocks weren’t born during the dot-com boom of the 1990s. In fact, many of today’s biggest publicly traded technology companies got their starts decades earlier. One of the most storied names in Big Tech dates back more than a century.
With stocks in the stratosphere, many investors have happily put off rebalancing as they watch their portfolios rise. Those same investors won’t be smiling when stocks fall back down to earth. It could be time to do some strategic selling.
While large- and mega-cap stocks are often the most headline-friendly, it’s small- and mid-cap stocks that offer real value to individual investors. That’s precisely because many of those small-cap stocks aren’t put at risk by widely read headlines. This creates opportunities for savvy investors who know where to look.
The Dow Jones Industrial Average achieved yet another milestone Wednesday, hitting 22,000 for the first time in history.
Dow Jones, Nasdaq, S&P 500 All Hit Record Highs
(Reuters) – Wall Street continued its record run on Thursday, powered by a barrage of strong quarterly earnings, particularly from Facebook and Verizon.
DETROIT (Reuters) – General Motors Co (GM.N) on Tuesday reported a better-than-expected quarterly net profit, helped by cost cuts, and promised to cut production in the second half to curtail its burgeoning U.S. inventory of unsold vehicles.