FYI: Tempted to cash in on the recent string of records in U.S. stock markets?
With the S&P 500 index SPX, -0.35% and Dow Jones Industrial Average DJIA, -0.04% up 22% and 30%, respectively, over the past year, traders could easily be forgiven for ditching the equity markets and bagging some solid profits before the bull market ends.
But as appealing as that may sound, you could be losing out on some serious returns in the coming years, according to Alan Higgins, chief investment officer at Coutts & Co. in London, the bank famed for having Queen Elizabeth II among its clients.
“The last two years of the bull markets are the best,” he said. “The minimum return of the last two years of the U.S. cycle is 30% minimum. So it’s very, very dangerous to be out of the market.”
Higgins explained that looking at historic data, the median returns are even higher at 45%, indicating that traders courageous enough to hang on until the very end could scoop up possibly some of the strongest returns in the cycle.
Regards,
Ted
https://www.marketwatch.com/story/dont-ditch-the-bull-market-its-dangerous-to-be-out-of-stocks-top-uk-fund-manager-says-2018-01-16/print
