Dow Jones hits another high: How it will impact Chattanoogans
CHATTANOOGA, Tenn. (WDEF) — The stock market keeps recording historic numbers. In just seven days, the Dow Jones rocketed from one all-time high to another. As the opening bell rang yesterday, the Dow read 26,000 points.
Since the election of President Trump, the Dow has spiked 7-thousand points, about a 40 percent increase.
But one financial adviser here in Chattanooga says the only affect consumers will see is an increase in financial confidence, not necessarily in tangible dollars.
“If you were living and breathing in 20-17, you should’ve been an investor. If you’re living and breathing in 20-18 you should be an investor,” said Jim Price, a local financial adviser.
Price says President Trump’s pro-business platform has made corporations more excited and anticipating a major tax cut — which they got. Corporate earnings, or the profitibility of a business, is also up. All of which helps the market soar.
But what does that do for you?
“There’s going to be good days and bad days in the stock market. None of that should change your attitude or your approach towards finances,” Price said.
Day traders see the most impact, but long term investors won’t see a tangible effect unless they plan on taking their money out now.
“The impact that I think that a stock market can have on confidence can be pretty big. If markets are doing well and unemployment is down, there is a high likelihood that the American public is going to spend more,” Price said.
The last time the United States saw a downturn in the market was nine years ago, during the 2008 recession.
But Price says don’t worry about when the mountain high rates come plummetting back down.
“Don’t try to be a predictor of markets. Pay very little attention to all the noise and all the information. Know what’s coming in. Know what’s going out. Save the difference,” Price said.