Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you, Brandy. I appreciate it.
Brandy Auterson-Hurst:
So the US stock market touched a major milestone recently. Could you tell us a little bit more about that?
David Nelson:
Sure. Exciting times. There’s a lot of press as far as built around this, the Standard and Poor’s 500, which is probably the most popular index as far as out there, crossed over 5,000. And so this was a big, big item. And again, we have periods of time like now where individuals start wondering as far as is the market move too fast and too high, too fast?
So I brought along a chart. I think that’ll help kind of break this down and maybe make it a little easier for folks to look at. The red lines that we have on there are essentially looking at the various tiers. So if we go back, this is a 30-year look at the S&P 500, and when we go back to day one there we’re looking at roughly the index at 400. This took place again Friday. And what we see here is those bars that we have there, the red lines are showing various 1,000 increments as far as when we’ve increased as far as over the last 30 years. So what’s interesting is as the market has gone up, people have a tendency to get nervous. And the reality, what typically takes place as this illustrates is the market continues to go up even at a higher clip as far as after these thresholds.
Brandy Auterson-Hurst:
Okay. So how should viewers be thinking about this when it comes to their investments?
David Nelson:
Well, I think if there’s one takeaway, I would have to say, if you’re waiting for a substantial pullback, this might be a good time to change the mindset a little bit and maybe start dollar cost averaging as far as into some of the investments you’ve been contemplating.
Brandy Auterson-Hurst:
All right. Some good tips there. Thanks David.
David Nelson:
Thank you.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on ourquadcities.com.
Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.
Indices mentioned are unmanaged and cannot be invested into directly.