Stockmarket – bull or bear 2013

The stock market of 2013 up to the middle of November has bloomed and is up almost 25%. This is contributed greatly to the value of 401(k)s and RRSPs which is the Canadian equivalent retirement system. The stock market bull or bear continues it’s upward trend into 2014 and possibly into 2015. there seems to be nothing serious on the horizon to  counter this continued wealth creation phase of the market. Anyone who got out of the market back in 2008 and 2009 and stayed out has lost thousands of dollars as a result and will never be able to recover this loss.

But the question increasingly remains is whether the stock market will continue its current level of increase. Or stay static towards the end of the year or whether there will be a correction of say 5%? Should investors begin selling off to collect profits? Or should they assume that the stock market is not finished with its run yet. Will it increase even further and provide them with more gains in their retirement plans. True there have been several corrections over the past year and there will likely be more in 2015. Some corrections have been as much as almost 10%, but they have failed to signal a switch to a bear market. So what is the Stock market – bull or bear prediction for 2015?

Stock market – bull or bear

For those investors Growth in their 401(k)s and retirement plans, this increase in the stock market this year represents a significant gain. It also puts them at risk should there be a correction in the gain to be wiped out or decreased. The question remains should they sell now to collect some profit or hold the course?

For those investors there is still a silver lining at the end of the investment horizon. They will continue to collect something in the order of 3% to 6% dividends depending on the stock
they purchase, the dividend that’s being paid and the value of the stock at the time they made the purchase.

Regardless of whether the stock value decreases or continues to increase, these investors will continue to receive their dividends. The bond market will continue to pay the bond interest that is been contracted on there certificates. Regardless of  the stock market direction over the next 18 months, dividends and bond interest will be paid into RRSPs and 401(k)s.

Investors should evaluate their 401(k) and RRSP investment plans relative to the type of stocks and bonds that they currently carry. The balance of risk management and income as well as growth should be considered. In view of which direction they feel that the stock market will go in 2013 and into 2017.