WrapManager's Wealth Management Blog
When life changes, we can help you thoughtfully respond.

Doug Hutchinson

CFA®, Director of Research and Trading

Recent Posts

Investing When the Market is at an All-Time High

Posted by Doug Hutchinson | CFA®, Director of Research and Trading

September 18, 2018

Should You Be Concerned About the Height of the Market?

US equity markets have been trading at or near all-time highs recently as the S&P 500 and Nasdaq Composite both reached new highs multiple times in August.1 This news has led some skeptics to believe that a US stock market at a record high level could be a cause for concern.

Does reaching an all-time high mean that the market is more likely to decline in the near future?

After all, reaching an all-time high means we could be at the peak of the market and we could now be poised for a sell-off. Before we get too caught up in the hype though, let’s take a look back at what market highs have shown historically.

Looking at the month-by-month returns of the S&P 500 (including dividends) from 1900 through July 2018, 276 of all months in this time period ended at all-time highs as compared to the monthly close of all previous months.2

Interestingly enough, of these 275 months ending at all-time highs prior to July 2018, 258 of them, or 93.8%, were followed by at least one new month-end all-time high at some point in the next year. 98.2% of all-time highs were followed by at least one new all-time high within the next 5 years and 99.3% of all-time highs were followed by at least one new all-time high within the next 10 years.

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Investment Planning

How Should You Handle Roth IRA, HSA, and 401k Savings? – Doug’s Quiz Corner

September 14, 2018
Saving for Retirement and Potential Health Care Costs Your friend Jody has recently started a new job and she has several options for ... [+] Read More

Should You Invest Your Entire Investment Portfolio in a Single Management Strategy?

September 4, 2018
We’ve all heard the term “don’t put all your eggs in one basket”. Of course, this concept can be easily applied to investing. Many ... [+] Read More

Should Investors Stress Over an Inverted Yield Curve?

August 21, 2018
Despite Apple topping $1 trillion in market value, the unemployment rate continuing to climb down, and a multitude of other positive market ... [+] Read More

Evaluating the Most Efficient Way to Save for a College Education – Doug’s Quiz Corner

August 17, 2018
What Are the Advantages of Using a Roth IRA vs. traditional IRA vs. a 529 Plan When Saving for College Costs? Consider this Scenario: Your ... [+] Read More

Is it Better to Save for Retirement or Pay Off Student Loans? – Doug’s Quiz Corner

July 20, 2018
Determining Priorities When Saving for Retirement and Paying Off Student Debt Consider this Scenario: Your friend Stanley has recently ... [+] Read More

Performance Reporting: Does It Really Matter?

July 10, 2018
When you’re validating a money manager recommendation, chances are high that you’re looking for information regarding the managers ... [+] Read More

Introducing the WrapManager SAIRSHA Global All Cap ESG Portfolio

June 19, 2018
Some investors wish to align their personal values with their investment portfolio, but there have traditionally been several stumbling ... [+] Read More

How Does a Stock Split Impact the Cost Basis of Shares? – Doug’s Quiz Corner

June 15, 2018
Understanding the Cost Basis Impact of Stock Splits & Reverse Stock Splits Consider this Scenario Your friend Bill owns a stock that just ... [+] Read More

Are Stocks Attractively Valued?

May 22, 2018
Over the past couple of years, the S&P 500 Forward P/E ratio has been above its 25-year average. This has led some market commentators to ... [+] Read More