Yesterday, our investments and savings accounts reached an all time high. Two factors were the main contributors. First, my company stock has finally exceeded its 2007 high earlier this year, adding about 20% to our account. Second, an inheritance from my parents added about 20% to our investment assets. Stock market gains also contributed to a lesser degree, since we have mostly been in cash.
At this point, I still don't feel the same euphoria that I had in 2007. While my company stock is up, I don't have confidence it can maintain the current price, much less advance. The property I inherited from my parents is a one time event and is also more likely to decline than advance in price. So I don't consider most of our gains in 2013 to be reproducible or sustainable.
So I continue to be financial cautious for the rest of 2013. As the market advances, I will use the opportunity to take some profits. Then I will wait for the next market decline to put funds back into equities.
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This is not financial or retirement advice. Please consult a professional advisor.
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1 comment:
I also don't feel that same sense of euphoria people had in 2007. I think the crash of 2007 shattered the illusion that the stock market reflects economic reality and that the stock market is a fair game the average joe can participate in. Now people know it's a rigged game where only those who are well connected benefit. So when we see it go up to record highs, main street just yawns since we now know it won't really benefit us.
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