Wealth Management

Current Bull Market 2nd Strongest Rise in History

“Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.” Sir John Templeton.

At Friday’s close of 2500, the Standard & Poor’s 500 index made a new all-time high and also capped its second strongest rise in history, up nearly 270%, eclipsing the 1949 – 1956 bull’s 267% rise, according to Bespoke Investment Group.  The current rally – which began on March 9, 2009 – had already pulled into second place for longevity in April 2016, and has now lasted 3,112 days without a bear market, defined as a 20% drop.  But first place is a long way off:  The famous 1987 – 2001 rally logged 4,494 days and a 582% rise.

Maybe Stock Valuations are Justified!

According to the WSJ today (7/31/17), 73% of the S&P 500 companies that have reported earnings for the second quarter have reported better than expected revenues. If that figure holds, it will be a record performance. The 5 year average is 53%.  57% of S&P 500 companies have reported so far.

Q2 revenue is growing at a rate of 5.2% vs. 7.7% for Q1 (the best quarter since 2012).  Revenue beats are also by a wider margin than usual – 1.2% above analyst expectations vs. a 0.5% average over the past 5 years.

Improbable Event – Donald Trump’s Presidential Victory

Donald Trump’s presidential victory is the second “improbable” event to occur in 2016 — just four months after the Brexit referendum. The message is clear: the status quo is totally unacceptable and the populist movement is real.

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Perspectives Newsletter October 2016

Click here to read our latest Perspectives Newsletter:  https://www.bfsg.com/marketing/WM_October2016.pdf

You Cannot Do This Alone

Receiving good financial advice pays a dividend that builds both wealth and confidence. The research presented by Dr. Daniel Crosby, a behavioral finance expert, is unequivocal that a cohesive strategy based on a clear understanding of where you are in your financial life and where you are headed can help you achieve the returns necessary to arrive at your financial destination while simultaneously improving the quality of your journey.  At BFS Wealth Management, we offer a comprehensive client-centric approach to financial success by taking the important pieces of your financial life and effectively bringing the pieces together into a financial life plan.

Please read more of Dr. Daniel Crosby’s thoughts here:  You Cannot Do This Alone