Why is the Stock Market at an all time high??
Hello All! As you have probably heard on the news or radio, "The Dow is up...blah blah blah." So what does all of this mean? First, if you need to understand the Stock Market a little better you can refer back to my post on Stock Market 101
With the Stock Market doing so well people are starting to worry that it may crash. It is hard to determine the exact reason it is doing so well and what we should expect next but here are some quick reasons why it is currently (possibly) doing well:
1) Remember The Fed, the people that control interest rates? Well they are keeping them low and this is causing not only prices, but the stock market to inflate. People want to invest in stock because the return is going to be higher than safe bonds.
2) Companies are actually earning more money. It is the time of year when companies are reporting their 2nd Quarter earnings and a lot of companies are actually doing well. This is indicating good economic times.
3) Some people attribute this to the new President Trump and call it a "Trump Bump." This phenomenon has tended to wear off since the election but people are expecting him to make business decisions that will cut taxes for companies and allow them to spend money on other things. The idea behind cutting taxes is that it will spur economic growth!
There are many other reasons behind the current state of the stock market but these are a few that are simple and keep you informed. What's next you may ask? At some point the stock market will have to stop growing and growing. Where there is an up then there is a down. It is hard to tell when that will be though.
Also, shop my favorite shoes that are getting me excited for the orange leaves of the Fall! Who knows what the stock market will be doing but at least our feet will look fabulous?