Corporate America is firing on all cylinders, but share prices are high and so are risks.
Bull markets become trickiest to navigate just when they start to look easy. Lately, this one has been a breeze. Investors in U.S. stocks have gotten more than a year’s worth of gains in six months, with Standard & Poor’s 500-stock index returning 12.5% since last November’s election, far ahead of the long-term annual average of 10%. Moreover, the ride couldn’t have been smoother, with volatility levels at a multi-decade low, despite a load of political uncertainty in Washington and geopolitical tensions worldwide. // It’s not surprising that many Wall Street analysts have raised their year-end targets for the S&P 500 as the index has surged past their previous forecasts–and we’re raising ours, too (more on that below). But we’re raising some yellow flags as well. Returns from here to year-end are likely to be tepid and harder to come by. Stocks could continue to tread water for a while, but the market’s tranquillity can’t last forever. // Corrections, typically defined as downturns of between 10% and 20%, occur about every two years. The last one, which shaved 13% off the S&P, ended in February 2016. But pullbacks of 5% to 10% occur every seven months or so, which means we’re overdue. As you look toward the end of 2017, it’s crucial to take stock of your investments— what you need to earn and, yes, what you can stand to lose—and to tweak your portfolio accordingly.
OUR FORECAST
Esta historia es de la edición July 2017 de Kiplinger's Personal Finance.
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Esta historia es de la edición July 2017 de Kiplinger's Personal Finance.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
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A SOLID YEAR FOR THE KIPLINGER 25
All but one of our favorite actively managed, no-load mutual funds gained ground as markets recovered.
YOUR VACATION HOME COULD PROVIDE TAX-FREE INCOME
If you plan to rent out your vacation home, it's important to understand how your proceeds will be taxed.
IT'S NOT YOUR IMAGINATION: YOUR CEREAL BOX IS SHRINKING
To avoid raising prices, some manufacturers are reducing the size of common grocery items. Here’s how to fight back.
SHOULD YOU WORRY ABOUT BEING LAID OFF? IT DEPENDS ON YOUR INDUSTRY
Downsizing has hit certain sectors. But cutbacks may be slowing, and some companies are expanding.
How identity thieves are exploiting your trust
Con artists themselves are disguising as well-known brands to steal your money and personal information.
CUT THE COST OF YOUR WIRELESS BILL
AT&T, T-Mobile and Verizon dominate the market, but smaller outfits offer similar network coverage at lower prices.
MAKING HOME ENERGY MORE AFFORDABLE
Households in need can get energy-efficiency upgrades, help with utility bills and more from this nonprofit.
A HEAD START FOR SAVERS
The Saver's Credit is designed to help low- and middleincome taxpayers contribute to a retirement account.
Say I Love You With a Money Date
To nurture a lasting bond with your partner, meet regularly to talk about money.
Plan for Your Own Elder Care
AFTER I wrote a series of columns in 2022 about elder care planning for family members, I received a number of responses like this one: “What about married couples who have no children or whose family members don’t live nearby?” wrote one reader. “Or a single individual with no close relatives? How should these people plan for their own elder care?”