Let’s look at a few stats:

• On March 2, 2009, S&P 500 value was 683.38. This was the low point since the market declined in 2008.

• On Jan 2, 2012, S&P value was 1,277.81

• On Dec 31, 2012, S&P 500 value as 1,466.47

• On Dec 30, 2013 (just a couple of weeks ago), S&P 500 value was 1,831.37

Where will it end?!!

This is the rhetorical question that is being posed by those in the media right now. Listen to the next interview you happen upon. The talking head will essentially dare the guest speaker to say that there is room for more growth.

There was no better topic for this quarter’s coaching event because the media is playing right into it. They are asking: Is this a bubble or isn’t it?

You might not be surprised that I think they are wrong from the get go. The question implies a speculators’ understanding of the matter. And any answer from such a perspective is simply not profitable for the investor.

Is there a bubble? Absolutely. Anytime one asset class outperforms another, you get a bubble. Since the large US stock market is up higher than the rest, that asset class is a bubble. And unless your advisor has done the prudent thing and sold off those gains to purchase more of the sectors that performed relatively less well, your portfolio has a bubble in it.

And yet, it’s a valid question to ask – Can this run persist? Look for my next post for the answer to that.

Better yet, join us at the January 29 dinner event!

Call Liz Trawczinski at 517-381-3450 to reserve your seats.