The stock market problem: Too much up; not enough down. Corrections are part of investing.

Ken Stern, Aligned Capital Partners

Too much up, and not enough down.

That’s the problem with the stock market today, believe it or not. Investing pros are worried that after a five-year surge to new highs, the stock markets are going to fall.

They will fall, and it will be ugly.

Expect screaming headlines and big play on TV newscasts. It’s really nice of investment people to warn us about this outcome, which would be as surprising as night following day and the Toronto Maple Leafs not delivering next season.

Investment types should be telling investors to chill out and not worry about market fluctuations.

Instead, by fretting about a market decline and investor complacency, the experts are sending the wrong message.

What investors need to hear right now is that a correction would be normal, and maybe even welcome as a tension reliever. Prepare for it by looking at your portfolio and making small adjustments (check this recent Portfolio Strategy column for ideas: tgam.ca/EDH1).

Stock prices these days are above average – no bargain, but not stupidly expensive. What’s worrying the experts is the fact that the markets have put together an unusually long streak of drama-free gains. In other words, too much up and not enough down.

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