Happy Leap Day! It’s been a couple of weeks since I wrote something, and what better occasion than a day that only happens every 4 years!
Good news has abounded lately, and today the 4th quarter GDP number was revised upward, signaling a continuing climb out of the great recession. The price of oil appears to be in check, and we are not likely headed to $5/gallon as some had speculated last week. This morning, the NASDAQ hit 3,000 briefly, the first time it had seen that level since 2000, when it fell sharply when the tech bubble burst.
On that note, the markets have continued their upward run, with the S&P now up nearly 25% from the recent bottom exactly 5 months ago. During that time, in December, we saw a 5% pullback followed by straight up since. I would not be surprised to see a 5-10% correction sometime soon, but that is no reason not to invest nor to discontinue any recurring investments that you may have. While good timing is nice, it’s better to be in the market with your long-term funds and rebalance to your objective as needed since there is no way to know when there will be a correction.