The S&P 500 tends to generate a return of about 9-11% per year, but that varies wildly. That variation has skewed in a very positive direction for stock market investors of late.
Most of the investors we speak with are concerned about what could be a bubble that’s about to burst. We do not proclaim to be stock market experts but encourage you to look at the indicators found on this popular website. You can click into each one for more details. The Buffett Indicator is of particular interest.
Both the slide deck and video reference a study by Dalbar, Inc., which shows that people often start their investment journey when they are excited about the market’s upward trend and sell after the market stalls and reverses course. If they hold, it can sometimes take decades for their portfolio to recover.