For the first time, the Dow Jones Industrial Average reaches 22,000 points, breaking another stock market milestone today.
Apple, whose shares saw a 6 percent hike after yesterday’s strong earnings report, gave the 131-year old index a 50-point boost.
So what does this mean for your wallet? Financial experts 12 News spoke with say more people are optimistic right now and more apt to want to invest.
“There’s always that excitement,” said Jason Cowans, Director of Financial Planning for Edelman Financial Services. “It’s a new level, but we also want to have that caution that we don’t want people to say it’s now at a high and they’re fearful that it’s going to go high and miss out.”
He says it’s important to look at the risk level you should be taking for your own goal and not let the perception on the market being hot make you want to change your risk level.
“We’re seeing a lot of consumer spending reports that people are spending more, because they’re more comfortable, so it does have a ripple effect,” Cowans said.
His advice? Sell high, buy low. He says the day-to-day movement on the stock market shouldn’t change your long term investing strategy.
“We tell everybody you should be saving until it hurts,” he said.
Cowans recommends continuing to save the way you were and above all, to be rational.
“Hopefully you’re using this as a, ‘hey maybe it’s time to get off your butt to take advantage of the market on your own terms,’” he said.
So the bottom line? Don’t get too comfortable and make any unwise decisions because of this record.
For more tips from Edelman Financial Services, go to EdelmanFinancial.com.
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