Market Milestone: S&P 500 Hits 5,000 - Why Caution Is Key

S&P 500 at 5,000 - Caution Advised If you cannot see this email properly, please click [here]( PoliticsAndMyPortfolio.com is a part of Sandpiper Marketing Group, LLC. --------------------------------------------------------------- Sponsor Message [BREAKING: The Return Of The Gold Standard?]( [After 89 long years… is this the return of the gold standard? Click here now for all of the details.]( --------------------------------------------------------------- S&P Just Hit 5,000… Why You Should Be Worried Here’s the background on this… The cost of stuff didn't go up as fast last month as it did in November. The Bureau of Labor Statistics said prices only went up 5.2% in December compared to 5.5% in November. That sounds like good news, since high inflation makes everything more expensive. But prices are still rising way faster than wages. So even though inflation slowed a little, it's still really high. That could mean the Federal Reserve will need to raise interest rates to get it under control. Higher rates make it harder to borrow money, which slows down the economy. The Fed has a tough balancing act ahead. --------------------------------------------------------------- Sponsor Message [Americans Now Favor Gold Over Stocks as an Investment Vehicle]( now consider gold a better long-term investment than stocks for the first time since 2013. But physical gold requires storage and insurance, and gold mining stocks come with significant risks. Fortunately, investors have found a little-known way to benefit from gold that avoids many of these challenges. [See why investors are so impressed by this overlooked gold investment strategy.]( --------------------------------------------------------------- Tech Stocks Lead The Way, But Is That A Warning Sign? Technology companies like Microsoft and Apple led the stock market to new record highs. The S&P 500 index closed above 5,000 for the first time ever. Microsoft is now worth over $3 trillion, passing Apple as the largest U.S. company. But many experts warn that just a few huge tech companies are driving most of the market's gains. That looks a lot like the dot-com bubble back in 2000 when tech stocks crashed. Today, Microsoft, Apple and Nvidia alone make up 18% of the S&P 500. If those giants stumble, they could drag down the whole market. The Economy Is Doing Well, But Who Deserves The Credit? Unemployment is low, corporate profits are high, and stocks are rising. By most measures, the U.S. economy is doing great right now. Republicans say their policies like tax cuts and deregulation deserve the credit. But Democrats argue the seeds for this boom were planted during the Obama years. They say Republican policies have actually increased risky behavior like stock buybacks while middle class wages lag behind. Both parties want voters to reward them for the good economy. But there's plenty of blame to go around if things take a turn for the worse. --------------------------------------------------------------- Sponsor Message [Billionaires Race to Invest in AI Energy Breakthrough]( Jeff Bezos and Bill Gates are investing in AI energy. This AI-created energy is being hailed as the most exciting human discovery since fire. [Here’s how to invest alongside them.]( --------------------------------------------------------------- Stay Focused on What Matters Most If you have money in stocks, the market hitting 5,000 seems like great news. But this concentration in a handful of tech giants should raise some alarms. When investing, it's often wise to buy low and sell high. Right now, stocks are high across the board. It may be prudent to take some profits off the table. The economy has ups and downs. A more balanced portfolio will withstand the next downturn better. Patience and moderation are still virtues, even in an exuberant market. Yet there is still reason to hope. By staying focused on sound investments, Republican policies that fuel growth, and scrutinizing Democrats' inflationary policies, you can steadily build your portfolio. Ups and downs will come, but keeping your eye on what matters most will lead to prosperity. Have faith that your priorities will pave the way to financial peace of mind. James Reagan Editor, Contributor PoliticsAndWallStreet.com --------------------------------------------------------------- Sponsor Message [Musk: My new robots could be bigger than Tesla]( No one can deny Elon Musk is a visionary. But has he finally gone too far? [>>See the shocking future of AI here<<]( --------------------------------------------------------------- PoliticsAndWallStreet.com Disclaimer This newsletter contains advertisements which are neither an offer nor recommendation to buy or sell any security. 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