Stocks are off to a strong start for 2018 — yet financial advisors say now isn't the time to get complacent.
The Dow briefly surpassed 26,000 for the first time Tuesday, and the S&P 500 and Nasdaq also hit record highs. That is, before U.S. stocks pulled back sharply in the afternoon on fears of a possible government shutdown, marking the Dow's biggest reversal since Feb. 10, 2016.
Up markets represent a prime opportunity to stress-test your portfolio against future volatility and downturns, said certified financial planner Lynn Ballou, regional director at EP Wealth Advisors in Lafayette, California. Make sure you're comfortable with all the investments you're holding.
"We get lulled into complacency in times like this, … then we kick ourselves if there's a market correction," she said.
As part of that analysis, examine allocations to make sure they're in line with your time horizon and risk tolerance. That favorable stock performance may mean your portfolio has gotten more aggressive over time.