The S&P 500 index recently closed above 5,000 and set a new all-time high, less than three years after it first crossed the 4,000 mark. While some are understandably nervous any time the market is near record levels, investors also tend to grow more bullish as the momentum continues.

Across market cycles, fear often turns to caution, giving way to optimism and eventually irrational exuberance. With the market's rapid climb over the past year, what should investors keep in mind to stay disciplined and focused on their financial plans?

When it comes to markets, day-to-day price swings are often more about what investors expect than the underlying facts. This is because markets are designed to anticipate future events and assign them a price today.

This gap between reality and expectations has driven stock and bond market volatility in recent days due to the Fed's latest announcement and headlines in the banking sector. What should investors know about these developments to stay focused on the long run?

The author Fyodor Dostoevsky once wrote that “man only likes to count his troubles; he doesn’t calculate his happiness.” The idea that the glass is always half empty perfectly captures how many investors feel about the economy and financial markets, especially over the past few years.

The S&P 500 has reached a new all-time high, coming full circle in just two years, despite growing uncertainty around the economy, the path of Fed rate cuts, and rising interest rates. Outside of traditional asset classes, Bitcoin also reached its highest level in two years recently following last year's run up.

The battle over the federal budget in Washington is adding to political uncertainty at a time when investors are already nervous about the economy and financial markets. Lawmakers are running out of time to agree on and approve a new budget after kicking the can down the road twice since last September.