Wealth Management Firm Near Me - Facebook Icon IMG  Wealth Planning Near Me - Certified Financial Planners Twitter Icon IMG   Find A Financial Advisor Near Me - Wealth Planners Linkedin Icon IMG 


Access Your Account Online

☰ Menu
Planning & Economy


January 27th, 2021

Local wealth management firms near me - Windsor Wealth Financial Bubbles IMG
Are fun until they pop.

In the case of soapy water, you get a little wet and slippery. In the case of equity markets, we get distressed, at least while the bubble deflates. Equity markets are fun while they rise and set new records and not so much when they get a little wacky. How much higher is too much? Do you know? Does anyone know?

I’m starting to hear about market bubbles. It seems funny, but every time I’ve listened to this caution, the bubble does not seem to pop; is that just me?


Here’s my take:

  1. The pandemic simultaneously drove our equity markets into a bear-market correction and a recession in the first two quarters of last year. In my opinion, that effectively concluded the downward phase of the previous business cycle, which began circa 2009.
  2. A new Global Business Cycle has begun, it appears: In the U.S. The Bureau of Economic Analysis estimates of GPD growth for the third quarter of 2020 registered a growth rate of 33.1%. The 4th quarter’s projected GDP growth rate by the Atlanta Federal Reserve Bank exceeds 7%. Globally, The International Monetary Fund projects a 3.4% growth rate in 2021 from a previously reported 3.3% growth rate in 2020.
  3. Whereas a few technology names previously drove equity market prices upward, the current market movement has been widespread across many industries, sectors, and capitalizations. In our experience, when market breadth is consistent with market prices, markets continue to rise for the foreseeable future.

Could markets correct? Sure, do you breathe? Could we have another severe correction or bear market? Of course, even one induced by a Black Swan Event, Covid anyone?

For now, enjoy the bubbles, dance among them, hold them in your hand; the future seems brighter from here.

Carlos Dominguez – CERTIFIED FINANCIAL PLANNER™, Portfolio Manager, RJFS

Top local certified financial planners near me - Windsor Wealth My-Risk-O-Meter Hover IMGWhen you get a minute try out our risk discovery tool – tell your friends




Photo by: Andrew Wulf @andreuuuw (cropping by me)


Sources are being provided for information purposes only. Raymond James is not affiliated with and does not, authorize, or sponsor any of the listed sources. Raymond James is not responsible for the content of any source or the collection or use of information regarding any source’s users and/or members. Past performance may not be indicative of future results.  Any opinions are those of Carlos Dominguez and not necessarily those of Raymond James. This material is being provided for information purposes only and is not a complete description, nor recommendation. The information has been obtained from sources considered reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Investing involves risk and you may incur a profit or loss regardless of strategy selected. There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Certified Financial Planner Board of Standards, Inc. (CFP Board) is an American 501(c)(3) certifying and standards-setting organization that administers the Certified Financial Planner certification program and oversees more than 73,970 professionals using the CFP certification in the United States.



Securities offered through Raymond James Financial Services, In., Member FINRA/SIPC.  Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Windsor Wealth is not a registered broker/dealer, and is independent of Raymond James Financial Services. Raymond James financial advisors may only conduct business with residents of the states and/or jurisdications for which they are propertly registered.  Therefore, a response to a request for information may be delayed.  Please note that not all of the investments and services mentioned are available in every state.  Investors outside of the United States are subject to securities and tax regulations within their application jurisdications that are not addressed on this site.  Contact your local Raymond James office for information and availability. Links are being provided for information purposes only.  Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors.  Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.