Today is the first anniversary of the Dow Jones Industrials Index hitting the 20K mark, and on this anniversary we start trading later this morning at over 26,000.
The 32.1% growth in this last year is the largest since FDR over seventy years ago. We also haven't seen a 20% pullback since 2009. Financial planner Richard Rosso tells KTRH Trump woke up a sleeping giant with his election.
“The entire animal spirits of the markets changed. It was like a wet blanket was removed and taken away. Psychology means a heck of a lot to markets,” Rosso explained.
So how does this impact you, even if you don't invest in the stock market? Rosso says that, again, it is psychological.
“This is one of the best retail seasons I’ve seen in a long time, albeit it’s been on credit. People are confident they will either get bonuses or wage growth,” Rosso said, adding that if you're invested into a 401K you see the physical results of this stock market boom, and that another result is that it makes you feel better about your job.