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As the financial press reported, U.S. stocks continue to inch forward or hold steady. Stock market indices opened with trading in positive territory, even as Hurricane Harvey affected refineries and other energy facilities. But while the market showed positive trends, it was a report, published last week by Bank of America Merrill Lynch (BoAML), which caught the eye of many.

On Thursday, August 24, BoAML reported investors have been fleeing stocks in a frenzy that hadn’t been seen for years. According to Evelyn Cheng with CNBC, investors had pulled an estimated $30 billion from U.S. stock funds over the past 10 weeks. That added up to the longest stock outflow streak since 2004.

The 10-week strain of withdrawals occurred despite market highlights, including a 1% gain by the S&P 500 for the quarter.  Contrastingly, Cheng noted that foreign markets posted strong inflow gains. European stocks, Japanese stocks, and emerging markets saw inflows of $36 billion over the last 10 weeks.

is the market set to correct

Update: Just moments ago, the Dow Jones Industrial Average hit 22,000 points -- a 20% increase from election season as well as an all-time high! The rise was attributable to strong earnings by Apple and other companies. Read on for some insights and opinions from experts and commentators about what may be ahead.

While the U.S. stock market hits red-hot highs, many investors wonder if a market correction may be ahead. With reports of upbeat corporate earnings in, the Dow Jones reached 21,982 points on Tuesday, at one point reaching an intra-day all-time high of 21,990.96 points. As of last Friday, 73% of the S&P 500 companies posting earnings reports had sales figures above estimates, as reported by FactSet.

Likewise, other indices saw growth. The S&P 500 attained 2,476, just a few points shy of its record-setting high at 2,484.04 in the week prior. And the Nasdaq rose to 6,375, putting on the pathway to setting a new record of its own.

While nobody knows what the future holds, economists and stock market experts say there is a growing possibility the market will end its current upward trajectory and correct itself. And the issue? Potentially overinflated stock valuations.

“There are many indicators showing that equities have reached a higher valuation than is consistent with changes in either underlying economic growth or revenue fundamentals,” commented Aaron Klein, a fellow in Economic Studies and Policy Director for the Center on Regulation and Markets at the Brookings Institution, to NBC News.  

With stocks holding steady against political dysfunction in Washington, D.C. – not to mention as-yet-to-be-delivered political pledges for healthcare and tax reform – it’s difficult to forecast where market trends may head. But if you’re in your fifties or older, being prepared to weather the effects of market volatility on retirement money is critical.

Here’s a quick look at some insights from various commentators and experts – and why you and other retirement investors may want to consider wealth preservation strategies while the value of your retirement assets is healthy and strong.

stock market slider photo

Following the election of Donald Trump as President-Elect, the market has been on the rise. On Tuesday, December 20, 2016, the Dow Jones Industrial Average nearly hit an all-time high. At session-high for the day, the Dow came within 13 points of hitting the 20,000-point benchmark – which would have been a new, all-time growth benchmark for the index.

In fact, with a strong, days-long market rally, the Dow has notched 17 record closes since the election. Other indices also have been on an upward trajectory, for one the S&P 500 set a new closing record on Wednesday, December 7. Financial pundits such as economist Mohamed El-Erian have pointed to growing investor optimism over anticipated Trump-administration economic policies as a growth driver.

For Americans aged 50 and over, all of this is excellent news for retirement portfolio values. But as historical data shows, market growth doesn’t happen in a vacuum or linger on forever. This is a critical point for people nearing retirement – particularly those within five to ten years of it. With life expectancies on the rise, one question is how they will pay for what may be 20-30 years of a retired lifestyle.

Income certainty is an important retirement concern, and older Americans are considering what steps they can take now for financial security. If retirement is in the near future for your household, here are some quick year-end tips to consider for lifelong income certainty, no matter where the market is.

What Happened to Your Money Lessons from Brexit

Last Friday brought news with truly global implications: British citizens voting to leave the European Union. The results of “Brexit,” or a referendum on whether the United Kingdom should stay a member of the EU, were surprising for many. By a margin of almost 52% to 48%, UK voters signaled their desire for departure.

In response, British Pound Sterling fell over 10% against the U.S. dollar overnight. Since then, the stock market has been in a flurry. To highlight recent market activity, as noted in stories from CNBC, Reuters, and MarketWatch:

  • Brexit and future eco-political possibilities provoked investor panic
  • The CBOE Volatility Index, an index measuring fear in financial markets, rose 49% to 25.76, its highest level since February 2011
  • There was massive investor selloffs, as a result
  • U.S. stocks plunged more than 3% on Friday, leaving the market in the red so far for 2016
  • On Friday, the S&P 500 fell 3.2% -- it lost all its gains in 2016 and its worst decline since August 2015
  • The Dow Jones Industrial Average lost 610 points on Friday, its 8th largest point loss ever
  • With a 4.5% decline on Friday, the NADSAQ was down nearly 6% year-to-date on Friday
  • Financial-sector stocks dropped 5.4%, the worst losses since August 2011 (a trend accentuated by London being a global financial center)

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