As Canadian and US stock market indexes hit new highs this year, many investors began expressing anxiety about a possible ‘correction’. Financial media personalities have also been speculating about the timing of correction from these recent market highs – following a strong run over the past year.
Let’s put this into perspective. Would these same investors be equally concerned if their homes were hitting record highs? No, it is likely they would be celebrating and cheering the market higher. So what makes the stock markets and equity investing different from other asset classes? And how does the fact of new equity market highs affect investor’s ability to build wealth and retirement assets over time?