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Today, we're discussing the current state of the market, which has seen impressive returns since last Halloween. The focus today is on the importance of maintaining discipline not just in downturns but also during strong market periods. Alex kicks off by highlighting the significant growth in the capital markets in 2023, following a challenging year. The S&P 500's substantial gains, especially in the last few months of 2023 and into this year, underscore the market's strong performance. This surge is attributed to decreasing inflation expectations and a boom in tech and AI sectors, lifting the broader market.Alex points out the necessity of rebalancing investment portfolios more frequently in such a bullish market to stick to original allocation targets. This is because different asset classes may not move in tandem, potentially skewing the portfolio away from its intended balance. However, he cautions against over-rebalancing, especially in taxable accounts, to avoid unintended tax liabilities, including the wash-sale rule. Rebalancing is about adhering to the original strategy, not changing it.Ed then shifts the conversation towards the psychological aspect of investing in such an environment. He stresses the importance of remaining cool-headed, noting that emotional investment decisions often lead to poor outcomes. Recognizing that all market runs eventually end, he advises investors to enjoy the growth but not become emotionally attached to it. Ed warns against the dangers of chasing performance and altering a well-diversified portfolio in pursuit of higher returns, using the late '90s tech bubble as a cautionary tale. He concludes by encouraging continued investment through dollar-cost averaging, highlighting the risks of trying to time the market and the potential to miss out on significant gains.In summary, our advice in this strong market is to appreciate the gains, continue rebalancing, and stick to your investment plan. It's crucial to prepare for all possible outcomes, recognizing that while the market's current trajectory is upward, it will inevitably shift at some point. You can always email Alex and Ed at info@birchrunfinancial.com or give them a call at 484-395-2190.Or visit them on the web at https://www.birchrunfinancial.com/Alex and Ed's Book: Mastering The Money Mind: https://www.amazon.com/Mastering-Money-Mind-Thinking-Personal/dp/1544530536 Any opinions are those of Ed Lambert and Alex Cabot and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The examples throughout this material are for illustrative purposes only. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional. Diversification and asset allocation do not ensure a profit or protect against a loss. Past performance is not indicative of future returns. CDs are insured by the FDIC and offer a fixed rate of return, whereas the return and principal value of investment securities fluctuate with changes in market conditions. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. Stock Market. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. Future investment performance cannot be guaranteed, investment yields will fluctuate with market conditions. International investing involves special risks, including currency fluctuations, differing financial accounting standards, and possible political and economic volatility. There is an inverse relationship between interest rate movements and bond prices. Generally, when interest rates rise, bond prices fall and when interest rates fall, bond prices generally rise. Investing in small cap stocks generally involves greater risks, and therefore, may not be appropriate for every investor. The prices of small company stocks may be subject to more volatility than those of large company stocks. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Birch Run Financial is not a registered broker/dealer ...