10 Keys to Boosting Retirement Portfolios in a Surging Market: Advisors’ Advice

The S&P 500 index topped 5,200 for the first time last week, underscoring the stock market recovery that has been enjoyed by investors following the pain and turbulence of 2022 and early 2023.

Since just October, the index has climbed 26%, and some market watchers think the 5,400 mark could be struck by the end of 2024. Their reasoning? Speculation that the end of the most aggressive Federal Reserve hiking cycle in a generation will keep fueling corporate America’s profits at a time when technology innovation and a strong labor market are propelling essential parts of the U.S. and global economy.

Of course, naysayers worry that the fresh market highs are being fueled by irrational exuberance and a reluctance to buy into the Fed’s 2% inflation target. Such experts warn about an ongoing tug-of-war between optimistic investors who foresee a soft landing for the U.S. economy, and the leadership at the Fed, which is determined to reduce inflation to its historical norms even at the cost of a recession.

This creates confusion for wealth managers and their clients, especially in positioning retirement portfolios and right-sizing risk levels carried by late-career workers. One risk is missing out on potentially significant gains in the months ahead, and another is seeing near-retirement clients’ portfolio values pop and deflate alongside a broader market bubble.

See the accompanying for advice from 10 advisors on the best moves they’re making for clients in or near retirement amid the repeated market highs of 2024. Some answers have been edited for length.