Anyone in finance can tell you that investing is a risk. Riskier investments can take an up-and-coming investor and chew them up. However, over the long-term, the stock market has generally been a safe investing opportunity for many individuals, from large scale firms to a college student with an extra couple of dollars lying around. Even so, the stock market is like an ocean wave, with peaks and troughs. HCR Wealth Advisors recently released a blog post stating 2017 has been one of the least volatile years in recent memory for the stock market.
According to the HCR Wealth Advisors website, it is a wealth management firm dedicated to providing financial and investment strategies to their clients. Founded in 1988, HCR Wealth has been advising individuals and companies alike on finance for 30 years. The firm recently stated that 2017 was the least volatile year for the stock market in recent memory, but also warned investors not to expect this again. HCR does give many reasons for investors to remain optimistic though. First off, the US economy is showing steady improvement, and investor confidence hit a 17 year high during 2017. Continuing with the trend of increases, the interest rate was raised 3 times by the federal reserve in 2017.
Jordan L. Kahn, HCR’s chief investment officer and author of the article in question, also shares his thoughts on a return to animal spirits present within the investing community. The term “animal spirits” refers to investor’s mindsets and confidence levels when it comes to investing. These mindsets have been missing for the better part of over a decade, and Kahn wonders if recent activity in the market will see a return.
Thought optimism is rampant, there are some areas that show lag in the market. Some of the most startling statistics are concerned with equity funds, which brought in a measly $123 billion, while bonds funds have brought in over $570 billion in the same time. More information can be read on their Facebook posts.
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