The Train Isn’t Leaving the Station Yet

You may be watching the financial markets and worrying you’ve missed the train.  When we hit a period of the market doing well, like we’re experiencing now, people often ask, “Is it too late to hop on board?”

Don’t worry – you weren’t left standing on the platform. If you look at historical trends, bull markets tend to end with euphoria. That means we’d see people throwing money into the market, thinking,“The train is leaving the station, and I want to get on!” We aren’t seeing that just yet. Currently, American investors have a good, healthy skepticism. Often, when people hold back slightly, it signifies that the market has room to grow.

Right now, we’re experiencing lower interest ratesand a real estate market that is still recovering from 2008. The weight of student debtis keeping graduates from qualifying for a mortgage.[1] Studies are showing young people don’t want what previous generations pursued anyway: they don’t want to cut the grass or trim shrubbery.Pride in home ownership is diminished in the younger generations, as well, so the houses at the bottom of the market aren’t being bought at traditional rates.  This is creating a conundrum for more established families that want to sell and “move up.”  It is also creating, however, higher incidences of periodic savings and investment by the youngest generation.  With “time on their side,” continued investment, regardless of volatility, will provide for a steady stream of inflows to investment vehicles.

With all of these factors at work, you can anticipate that the market will continue to grind higher. This holds true, even with a seemingly perpetual logjam in Washington.  Historically, when one political party controls the three branches of the American government, they’re able to make sweeping changes. Unfortunately, business doesn’t like that. Financial markets like stability. They benefit from knowing the ground rules won’t change and nothing’s shifting under their feet.

Ambassador Advisors will always follow our principles, buying conservatively and buying well-diversified. Today’s as good a day as any to jump into the market. The train isn’t leaving the station yet.

[1]http://www.businessinsider.com/millennial-homeownership-lower-2017-6/#housing-is-less-affordable-for-millennials-compared-to-the-overall-population-1

Securities offered through American Portfolios Financial Services, Inc. (APFS), member FINRA/ SIPC. Investment Advisory Services offered through Ambassador Advisors, LLC. Ambassador Advisors is not owned or operated by APFS.