MEDFORD, Ore. — When the bell sounded Thursday afternoon on Wall Street, the Dow Jones average closed at more than 16,000 for the first time.
Over the past four years, the Dow has just about doubled. Local investment experts said this is largely thanks to the Federal Reserve pumping in money. The goal of the stimulus is to increase consumer confidence while increasing job growth. The stock market is considered a forward looking indicator and right now, it’s still a “wait and see” game.
“We’re all hopeful that the economy and employment numbers improve, if they do, the market will go higher. If they don’t, and the Fed starts to tighten or raise rates, look out below,” said investment consultant Doug Armstrong.
Experts said the price of gold has fallen about 15% from its peak and many have switched from gold investments to stocks. Consultants said if you are looking short term, it may be best to pull in the reins while long term investors have time to ride the peaks and valleys.