What Will Keep The Stock Market Humming?
After a very disappointing first half of the year the stock market has started to come to life, finally. Some believed that the dismal performance was a precursor to a bigger more devastating drop to come, while others felt it was just the market digesting the sizable 2017 gains.
The market flew higher from a strengthening economy, strong corporate profits and tax reform. Even though we are still feeling the tailwind from these, they are old news and the market likes new news.
So what is going to keep this market humming?
I have learned from a not so obvious indicator that U.S. Corporations are set to buy back over $1 trillion worth of their own shares this year. For those not familiar with corporate buy backs, that’s a gargantuan number.
Corporate buy-backs do two things: It shows that companies are bullish on their own stock, and that they feel strongly that the economy in general is going to do well. Technology companies will make up approximately 40% of that total.
Although, don’t bet the farm on this alone. These guys are not always right. However, it is one more positive indicator to help give investors confidence.
Regardless of the stock market alone, there are ways to make money in any market. Stocks are just one of the 7 asset classes. Put in the time to do the proper planning, invest appropriately so you are getting the best return with the least risk possible and have an asset protection plan firmly in place, not if but when the market decides to crash again.
It all starts with a comprehensive Retirement Income and Tax-Strategy analysis, something we do for free for our clients. If you would like your free customized analysis, simply give us a call today.
“Invest for need, not for greed™”
Cheers -Keith Springer