Globe editors have posted this research report with permission of S&P Capital IQ. This should not be construed as an endorsement of the report's recommendations. For more on The Globe's disclaimers please read here. The following text is excerpted from the report:
During the past few weeks, the financial media has constantly reminded investors that the S&P 500 has recorded successive all-time closing highs. They also make it sound as if we should enjoy these days while they last.
History, on the other hand, shows that new highs are typical in a maturing bull market. History also tells us that the S&P 500 has a few more percentage points to go to the upside before possibly slipping into another decline of 5 per cent or more.
Buy-and-hold investors should prepare to hold on tight and don't let your emotions get in the way of maintaining an appropriate asset allocation. However, for those willing to trade short-term swings in equity prices, another opportunity may just be around the corner.
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