In An Optimistic Market, Dow Looks Good

9 May
wall street

The Dow Industrial average was up above 15,000 for the first time on Tuesday.
Image: Shutterstock

On Tuesday, the Dow Jones industrial average climbed above 15,000 for the first time ever. That comes just two months after the losses from the 2008 financial crisis were finally recovered. And Wells Capital Management chief investment strategist James Paulsen says it’s all because of optimism.

“The thing that’s been driving stocks is rising confidence,” he said, according to the New York Times. “Economic Growth, job creation and the housing market have been better than expected.”

The economy has strengthened a lot over the past few years, though people have heard over and over that it is in a bad state. But things are looking up: unemployment rates are down, the Dow is up, and the market is favorable.

Borrowing is still rising, but at a slower rate than before. Credit card debt is an astounding 17.2% lower than the 2008 high of $1.02 trillion (it’s now at $846 billion). Interest rates in the stock market are at record lows, and many corporations are seeing strong profits come in.

In short, all signs point to “go” for investors. The market has generally exceeded the expectations of the public, the investors, and Wall Street. For the rest of the year, earnings are expected to continue on their upward trend. For investors, that means less risk and more reward. It’s a good time to invest in the market, since the rising stock prices haven’t included the normal array of concerns like falling profits and higher interest rates. Plus, we don’t seem to be headed toward another recession—and that’s good for everyone.

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