A good stock market index provides you gains in your index annuity when it goes up—it’s as simple as that. Right now the 2018 stock market is looking unbelievably good—better than some of us have ever witnessed in our careers. After President Donald Trump was elected, not only has the stock market seen a meteoric rise, but the economy and its indicators have experienced a meteoric rise as well.
Let’s consider a few of the records that this market has broken since the end of 2016:
- In November 2016, the Dow Jones Industrial Average index went through 19,000.
- In January 2017, it went through 20,000.
- In March 2017, it went through 21,000.
- In October 2017, it went through 23,000.
- In November 2017, it went through 24,000.
- In early January 2018, it went through 25,000.
- In late January 2018, it was over 26,000.
The 2018 stock market is undisputedly the greatest bull market in the history of bull markets. Here are a few other bull markets to compare it to:
- From 1946 to 1952, the stock market went up 267 percent.
- From 1982 to 1987, the stock market went up 229 percent.
- From 1993 to 2000, the stock market went up 302 percent.
- Between 2009 and today, the stock market is up more than 330 percent.
Why has this market been doing so well? One significant factor is that the market believes that we have a pro-business government. Some economists said that the market would collapse if Donald Trump was elected President, and they have been wrong. Our imports are up, our exports are up, our earnings are up, our revenues are up, our unemployment is down and our regulations are down.
This all adds up to a market that has been doing great and that will probably continue to do great. The stock market has zoomed up, and if you are in stocks, bonds and mutual funds, your portfolio has benefited. If you are in a good index annuity, you are participating in those gains as well.
Keep in mind that healthy bull markets typically correct 3 to 5 percent every 18 months, and we haven’t had a correction like that in years. We’re due for a small correction, which could happen sooner, later or sometime in between.
So what do we do with the fact that the stock market is skyrocketing, but that it could correct itself at any time? How do we take that information and make intelligent decisions with it?
If the stock market is doing well, it makes sense that you want to be in a position where you’re going to do well with it. But the nice thing is, there are investment vehicles—good fixed index annuities—that allow you to take advantage of the rising market while having your money protected against losses at the same time. Does that mean you have to take all of your money out of the stock market? No. You can take part of it, have it protected and still get a reasonable rate of return. There’s a happy medium there.
The point is, what the market is doing now and what we predict it is going to do actually has very little to do with our innate need for security as human beings. We have a basic need for security, and in our society, money is a huge part of that. It is important for us to have our money in a place where we feel that it is financially secure.
If that is something that you want for yourself and your money, then the Ty J. Young Inc. team can help by offering you a good fixed index annuity that will keep your money protected while growing with the stock market at the same time. Give us call at 877-912-1919 to learn more!