The S&P is now at the highest level since September of 2008. The Dow has been up ten out of the last eleven days. The Bull is back?? Of course, the volume of trading has been very low, making the recent good performance of the market less reliable. Obviously, traders and investors are taking the rest of the year off and good for them!

The market mood right now is like the warm afterglow from a good bottle of chardonnay. Enjoy it, but get ready for next year!

This is a good time to look at your portfolio for tax planning. Most people have some tax loss carryforward from previous years. If so, consider taking some of this year’s capital gains, as they will essentially be tax-free, and reposition that cash. Some analysts fear next week will be a bad week in the market for this reason, I doubt that. The Obama-McConnell tax deal postponed tax hikes on capital gains (and dividends) for another two years. So, a pending tax hike is no reason to sell before year-end.

I’ll be discussing next year’s forecast in this space, but the reader should be developing their own thoughts as well.

Lastly, do your financial advisor a big favor and start asking yourself if your investment objectives have changed? More importantly, has your tolerance for risk changed? If you are not sure, you need to call your advisor . . . now!