The stock market rally has briefly paused as investors weigh the timing of the first Fed rate cut this cycle. So far this year, the S&P 500 has achieved 16 new all-time highs amid steady economic growth, improving inflation, and the ongoing rally in tech stocks.

Many other asset classes have also contributed to portfolio gains in this environment. Both gold and Bitcoin, for instance, have also reached new highs in recent weeks, rising above $2,185 and $68,399, respectively.

With the presidential election season heating up, there will no doubt be a flurry of daily headlines between now and election day on November 5. A rematch between Joe Biden and Donald Trump seems inevitable with Trump currently leading many presidential polls among registered voters while Biden is raising and spending more campaign funds.

The stock market continues to reach new heights, driven by a stronger-than-expected economy and the largest technology stocks. In particular, Nvidia, a maker of graphics chips used in artificial intelligence applications, recently helped to push markets higher after it beat Wall Street earnings expectations.

This has added to the gains made by the group known as the Magnificent Seven which consists of fast-growing technology companies, many of which have market capitalizations of a trillion dollars or more. In this environment, some investors may be nervous that the market has risen so far, so fast. At the same time, other investors may have a growing fear that they are missing out. How can long-term investors stay balanced when markets have climbed so quickly?

Consumer spending is the backbone of the U.S. economy, constituting over two-thirds of our nearly $28 trillion GDP. When consumers spend money on everyday goods and services, and make large one-time purchases, it not only helps to spur economic growth but is also a reflection of economic trends.

This is because many factors affect consumer purchases including consumer sentiment, the job market, household net worth, inflation, housing prices, the stock market and more. What do investors need to know about the state of the consumer and how it might affect the economy and stock market in the coming year?

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?