{"id":3408,"date":"2016-07-28T16:51:08","date_gmt":"2016-07-28T20:51:08","guid":{"rendered":"http:\/\/162.223.13.186\/~zacksim\/bull-markets-dont-die-of-old-age\/"},"modified":"2022-02-26T13:22:11","modified_gmt":"2022-02-26T13:22:11","slug":"bull-markets-dont-die-of-old-age","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/bull-markets-dont-die-of-old-age\/","title":{"rendered":"Bull Markets Don\u2019t Die of Old Age"},"content":{"rendered":"<p><strong><em>Pensacola, FL asks<\/em>\u2026<\/strong><em>Mitch, the bull market is in its 7<sup>th<\/sup> year \u2013 is the next bear around the corner? When is it coming and how can I prepare?<\/em><\/p>\n<p>Thanks for the question. Know that bull markets don\u2019t have to die of old age. Who\u2019s to say this won\u2019t be the longest bull market in history? It\u2019s possible. Investors should not make defensive portfolio adjustments simply because it \u2018feels like\u2019 the bull market is \u2018due.\u2019 This is now the 2<sup>nd<\/sup> longest bull market in U.S. history (behind the 1987-2000 bull) and fundamentals suggest this current bull won\u2019t end this year.<\/p>\n<p>The decision to lower equity exposure should hinge more on your age, tolerance for risk, and cash flow needs versus a forecast for timing the next bear market. In other words, investors are generally best served by allocating investments in their portfolios based on factors they know\u2014 investment objectives and time horizon. Keep it simple.<\/p>\n<p>The other thing we know is that, over time, stocks have trended higher than other asset classes and have delivered consistently positive returns over the long run. You can\u2019t find any 20-year period in history where stocks delivered a negative return. Why try to get cute with the market and risk <em>not<\/em> generating that positive long-term return? Think of it this way: <em>trying to time the market actually decreases the likelihood you will generate a long-term positive return. <\/em>In my view, it\u2019s not a risk worth taking.<\/p>\n<p>Tooting our own horn here for a minute\u2026the Zacks Investment Management approach is to build portfolios based on quantitative research and diversify and allocate investments according to one\u2019s risk tolerance and timing for needing those investments in the future. We\u2019re extremely proud of our performance track record, especially given our focus on managing downside risk for our clients. Pensacola, I hope you\u2019ll take a closer look at how we go about \u2018taming\u2019 the bears and driving performance\u2014it\u2019s about putting the \u2018math\u2019 and subsequent insights to work every day so clients can rest easy every night.<\/p>\n<p style=\"text-align: center;\">\n","protected":false},"excerpt":{"rendered":"<p>Pensacola, FL asks\u2026Mitch, the bull market is in its 7th year \u2013 is the next bear around the corner? When [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4257,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[66,71],"tags":[],"class_list":["post-3408","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mitchs-mailbox","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/3408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=3408"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/3408\/revisions"}],"predecessor-version":[{"id":11259,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/3408\/revisions\/11259"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=3408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=3408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=3408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}