After markets experienced a January freeze that saw both the Dow Jones Industrial Average and the S&P 500 fall between 3 and 4 percent, February has provided a needed thaw for investors. At the close of business on Friday the S&P 500 had set a new record high and the Dow finished above 18,000 for the first time this year--very close to another record high.
Some of the concerns that had investors spooked last month have faded slightly. Oil now sits atop $50 per barrel, central banks around the world are cutting interest rates and buying bonds and a number of companies have reported strong earnings.
Whenever markets hit a new high, it is easy to get nervous that they will fall. No one can predict what will happen, the markets can fluctuate. As we continue to see more volatility it is imperative that investors rely on their plan, focus on quality investments and remind themselves of their investment time horizon.
Records are meant to be broken.
Ethan Wade, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).