This bull run in the stock market turned five years old a few months ago is now up over 200% in that time period, as measured by the S&P 500 Index. In the context of historical bull runs, it is neither the strongest or longest in duration. Though it has a ways to go to surpass the longest run in history – the one that followed the crash of 1987 and stretched all the way through the 1990’s and ended in March of 2000 – it has worked its way into the top five runs.
What does this length and strength mean? I have no idea. If I knew what the markets were going to do with any amount of certainty, I would be a very rich man. If nothing else, many people are at least giving thought to making adjustments to their retirement portfolio in anticipation of a pullback.
As SavvyInvestors know, the mix of cash, stocks, and bonds that you hold in your portfolio at any given time is very personal and will change over time. The allocation of your assets is not a case of doing it once and being done; it is not a static practice.
The asset allocation that works best for you at any given point in your life will depend largely on numerous factors such as your tolerance for volatility and risk, your time horizon, your goals and perhaps, the length and strength of a bull (or bear) market.
This week’s SavvyPoll asks, “As this bull run extends itself, what actions are you taking with respect to your retirement portfolio?”
A. Standing Pat
B. Increasing Position in Bonds
C. Increasing Position in Cash and Cash Equivalents
D. Increasing Position in Equities