Dow 24000

Dear Garden State Trust Company:

Wow, the DJIA crossed 24000! No one told me to expect that when the year started. How much higher can the stock market go?

—Nervous Investor

Dear Nervous:

Monty Python famously said, “Nobody expects the Spanish Inquisition.” In much the same way, no one will ever predict a 20% rise in the stock market, even when they are optimistic. Surprises on the upside are pleasant ones, so prognosticators are happy to make such a mistake.

We can’t know how much farther this bull has to run, but at the moment the economic indicators are positive. Consumer spending jumped 0.9% in September, followed by a 0.3% rise in October. Gross Domestic Product grew 3.1% in the second quarter and 3.3% in the third. Most estimates for the fourth quarter are between 2.5% and 3.0%. New home sales in October reached a 10-year high, and consumer confidence is at a 17-year high, the highest in this century, according to the Conference Board.

These indicators suggest that this economic expansion has plenty of life left in it. On the other hand, it’s been a long time since the last stock market correction (a price drop of 10% or more), and market tops are impossible to predict. If inflation heats up, the Federal Reserve Board may act more aggressively to increase interest rates, and that action could, in turn, bring the rise in stock prices to an end.

Does that answer your question?

Do you have a question concerning wealth management or trusts? Send your inquiry to contact@gstrustco.com.

© 2017 M.A. Co. All rights reserved.

End of Year Review

As we are nearing year-end it makes a lot of sense to review your current Will, especially if any of the following occurred during 2017 –

  • A named beneficiary died
  • A possible beneficiary was born
  • A named beneficiary divorced
  • A named beneficiary is very sick or has a drug dependency
  • You are moving or moved to a different state
  • The value of your assets changed significantly

These are just a few events that should prompt a review of your Will and your Estate Plan.

The professionals at Garden State Trust Company will be happy to meet to review your Will and Estate Plan at no obligation to you.

http://www.gstrustco.com/boomers—beyond.html