The Stock Market bottomed, after the so-called Great Recession (4Q/’07-1Q/09) that caused the Dow Jones Industrial Average to drop from just over 14,000, in October of 2007, to just under 6.500, on March 7, 2009. Just after President Barack Obama took office, January 20, 2009, the Stock Market and the Economy have been recovering. That’s why 401(k)s and IRAs have bounced back nicely since then.
Edward Yardeni, Ph. D., and Laszlo Birinyi are two long-time Wall Street figures. Over the years, they certainly have been through the many UPs and DOWNs that are part of the Financial Landscape. Although each remains optimistic about the Markets, they are concerned that many investors are not realizing the potential dangers that the Markets may contain.
The Economic Recovery, although positive, continues in a slow growth mode and the Federal Reserve is providing a considerable amount of Liquidity to the Money Supply. Some might be concerned also with the pending change-of-command at the FED; however, Janet Yellin, Mr. Bernanke’s replacement, is well-qualified and has served as his Deputy for several years. But, after a long positive run, it is generally good to take some money off the table–adding a bit more to bonds, defensive stocks and cash.
The linked article, from the NY Times, covers the two Old Pro’s concerns rather well,
http://www.nytimes.com/2013/11/03/your-money/the-dangers-of-a-stock-market-melt-up.html?ref=international&pagewanted=print. Now, once again, I am not suggesting that the Sky is Falling; but, it certainly is a good time to review your portfolio, however, unless you have already done so recently. Perhaps give a copy of the linked article–if you wish–to your Advisor before you meet or discuss it with her or him.