The stock market has seen multiple record high closes as of late, with the Dow Jones closing above 22,000 for the first time ever at the beginning of August. With all of these numbers being thrown around, it can be a challenge to determine what they actually mean.
Wealth advisers describe the market as a roller coaster, one that goes up and down as time progresses.
Companies earning at record highs combined with expected tax cuts lead experts to perceive the market as valuable.
"When the stock markets high the whole of America relaxes, were breathing easier, we're spending money a little bit more, it stimulates the economy even more." Describes Brent Welch, Wealth Adviser at Welshire Capital.
It is inevitable that eventually, the market's value will decrease, and experts say the best protection is to be prepared.
"Noah didn't build the ark when it was raining, he built it before it rained. So to protect yourself from these downside movements that are going to happen in the market, begin to do it now," describes Welch.
"Take some money out of growth stocks and put them into value stocks, into blue chip stocks, maybe pull a little money off the table as well," continues Welch.
Even though the market's value will eventually decrease, everyone should be aware of what the record highs mean to them.
"For the individual investor, the time to get more conservative is near record highs. Not with all your money, not move to the sidelines cause that's foolishness. Like I said I think there's plenty of gas in the gas tank of the economy to move it forward," Welch explains.
"Keep some in because the market still has a slow, what they call plow horse economy, just moving forward slowly as it's done for the last eight years and I think it's going to continue to go north for a while."
To learn more about Brent Welch, look into his book on Financial Security.