2013 has been an amazing year for Wall Street, at least from the outside perspective, as the New York Stock Exchange (NYSE) has continually closed at all-time record highs throughout the past several weeks, breaching 17,000 for the first time ever last month. However, many fear that the currently bullish stock market may be climbing so recklessly to unprecedented heights that it is bound to come crashing down with as much, if not more, fervor.
With the federal government continuing its attempts to tighten its stranglehold on the economy and intervene in the free market, the recent success of the stock market could actually be somewhat artificial. Because industries haven't been given room to recover from the Great Recession organically, this intervention may be hindering long-term, sustainable economic health.
According to S&P Capital IQ, a Wall Street analytics group, the S&P 500 has seen an annual gain of 20 percent so far this year and an average overall increase of 10 percent, meaning 78 percent of the time, there was a positive recording as of the closing bell. While this has been the best year-to-date surge since 1997, if history holds true, we may be in the midst of a cycle that calls for a lapse in positivity in the not-so-distant future.
"There's no sign of recession, which suggests the economy and earning should continue to grow. But I do think we've probably passed the point where (investors) will be as willing to drive up the price of equities dramatically faster," Bruce McCain, who helps oversee more than $20 billion as chief investment strategist at Key Private Bank, told FOX Business.
If you are worried that your investments, and subsequently your retirement, could be at risk as the market enters 2014, look into your wealth preservation options to gird your finances against potential pratfalls in the new year.