DOW Reaches Historic High
Not too long ago we celebrated the Dow breaking 19,000. Now, we have hit yet another significant milestone. The Dow closed above 20,000 today. 2016 was quite a year. We saw more polarizing politics and periods of uncertainty than ever before. Through it all, investor confidence and overall economic confidence appeared very strong.
Remember from our previous email, the Dow Jones Industrial Average consists of only 30 stocks. A diversified, strategic portfolio may not rise and fall as fast as the Dow. Still, the Dow is a great indicator of overall market movement. It’s hard to say how long the Dow will continue to rise without a cyclical pull back. Of course, there are detractors saying, “The market is moving too high too fast, so you need to exit the market and buy gold or silver.”
We remind those naysayers of 2013 when the Dow hit three different thousand mark milestones in one year for a total gain of 26.5%. During such market growth periods, it’s easy to get excited and throw caution to the wind or become fearful and run for the hills. Despite certain emotions that come and go, we still want to remain disciplined and focused in our investment strategies.
As we head into a new year and new presidency, we are hopeful for this growth to continue. All we ask from Washington is for economic and fiscal policies that will continue growing the economy. So far, we have seen how well the markets react to the anticipation of pro-economic policies alone. If we see reform come to the tax world, domestic energy development, and US job retention, we believe the markets will continue their positive trend.
Overall, we ask you to stay focused on the long term. Stay diversified and keep to your carefully developed strategies. We will always be here to help you stay on the right path.
As we start this new year, we want to say, once again, how grateful we are for you. We are passionate about what we do. We see ourselves in service to you and your families. As financial advisors, we have a passion for the world of finance and investments. That passion is eclipsed by the sense of satisfaction we feel when serving our clients. Nothing replaces the joy of seeing our clients enjoy retirement or feel secure in their financial positions. We sincerely thank you for letting us be a part of your lives.
Ryan Craner, John Park, and Staff
These are the opinions of Ryan Craner and John Park and not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice. Diversification and asset allocation strategies do not assure profit or protect against loss.
Registered Representatives, securities offered through Cambridge Investment Research Inc., a broker-dealer, member FINRA/SIPC. Investment Advisor Representatives, Strategic Planning Group LLC., and Cambridge Investment Research Advisors, Inc., Registered Investment Advisors. Cambridge and Strategic Planning Group are not affiliated. This communication is for individuals residing in the states of Alabama, Arizona, California, Colorado, Florida, Iowa, Idaho, Kentucky, Montana, Nevada, Ohio, Oregon, Pennsylvania, South Dakota, Texas, Utah, Virginia, Washington, and Wyoming.