It’s no secret that the stock market has welcomed us back in a big way since the beginning of 2021. U.S. stocks have reached record highs, with the Dow Jones Industrial Average and the S&P 500 both up more than 10% for the year so far. It’s a far cry from the 20+% drop the stock market saw in the final months of 2020, and a reminder of the resilience of the markets and the overall optimism in the markets.
This surge in U.S. stocks has been driven by a combination of factors, such as corporate earnings growth, a weakening U.S. dollar, strong consumer confidence, and an increase in new businesses launching. Many people have seized upon this optimistic moment and jumped into the stock market, with some of the largest influxes of new investors seen this year.
However, it’s important to remember that as with any kind of market, the stock market’s performance is never guaranteed. Market volatility is normal, and within their current performance, stocks have already taken a slight dip. While there’s plenty of reason to be optimistic today, it’s always important to temper these expectations with realistic expectations.
That said, the present moment is a great time to get to know the stock market and start investing in it. With the U.S. market showing such resilience and promise, it’s an excellent opportunity for those looking to make a long-term commitment to investments. There’s never a perfect moment to invest, but a market like this could offer a great starting point for those looking to make informed and secure investments as part of a broader financial strategy.