Rethinking your investment strategy after the Dow's record high

Traders react at the end of trade at the New York Stock Exchange in New York.

This week, the Dow Jones Industrial Average partied like it was 1999, which was the first time the index first closed above both 10,000 and 11,000. But is the financial gravy train going to keep chugging now that we're once again in record territory? Nearly all of us have skin in the game -- our retirement funds, our kids, college funds. Should we be rethinking our investment strategies with the Dow above 14,000? And if we've been on the sidelines, is it too late to get into stocks? To answer those questions, we're joined by Ken Winans, a portfolio manager and founder of Winans International.  

"The markets are moving in a positive direction and there's an awful lot of really good companies that are doing very well right now," says Winans.

Some analysts say we are at the outset of an enormous bull run, so should investors rethink their allocation between stocks and bonds? Go a little heavier in stocks at the moment?

"Yes. Not to be in equities in the long term and not to be in good companies is technically a mistake. Now, you can find corporate bonds out there that are paying 5, 6, 7 percent. For a lot of retirees or people nearing retirement, I think that makes a lot of sense because you will need income when you retire. If you're young and you've missed the bond market rally and you are looking at where [to] put new money, I think you have to lean toward equities," says Winans.

Winans says it's not too late for people to jump back into the market, but he warns that nothing goes straight up. Plus, there's also a seasonal issue within the markets. In April, people will have to pay some large tax bills. Winans says he wouldn't be surprised to see people have to sell some of their stocks to pay those bills -- so there could be a temporary lull going into April. And the continuing budgetary problem could impact the markets as well.

About the author

David Lazarus is an American business and consumer columnist for the Los Angeles Times.

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