"I find the general public is pretty plugged into financial news right now," Kurt Rosentreter, senior financial adviser at Manulife Wealth, told the Globe and Mail's Tim Shufelt. "The longer it goes on, the more people you see looking to pile in and increase their stock exposure." This highlights that as the market keeps rising, the allure intensifies for investors, leading them to take riskier positions.
With less than two months to the end of 2024, the S&P 500 is up nearly 26% through Nov. 7. If this holds up, it will be the in the past decade in which the index delivered an annual return of 20.0% or higher. Over the same period, the index has had only two down years: 18.11% in 2022 and 4.38% in 2018. The current rally showcases an intense bullish sentiment.
When valuations near record highs, Mr. Market hints that you might have too much in the stock markets. Significant gains make your portfolio underdiversified or reliant on one or two stocks. Having sell rules avoids having too much money in the stock markets. This practical advice emphasizes the importance of strategic risk management as markets surge.
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