The stock market continues to roll along, with all three indexes reaching a record high in recent days, including the Dow Jones Industrial Average surpassing the 27,000 mark for the first time ever. In fact, stocks are now up nearly 20 percent since the start of the year. At the same time, investors are pulling money out of stocks, to the tune of some $140 million worldwide so far this year. "A lot of people are missing out on one of the greatest bull markets we've ever seen here," says Jordan Goodman, The Money Answers Man. "People are buying bonds and selling stocks at a time when the stock market continues to rise to all-time record highs."
As for why investors remain skittish about stocks despite the booming economy, Goodman believes there are multiple reasons. "Individuals, I think, are still burned by what happened in 2008 and 2009, and they don't want to be in at the top before things fall out again," he tells KTRH. "They see that earnings are rising at a slower pace or in some cases falling, they're concerned about the trade war with China, they're concerned of a possible hot war in the Middle East with Iran, there are a lot of things to worry about."
Nevertheless, the bull run is likely to continue on Wall Street, especially if the Federal Reserve follows through on an expected interest rate cut later this month. "I think it's likely the Federal Reserve is going to lower interest rates at the end of July...and I think the Fed could cut rates again, maybe in September, maybe in December," says Goodman. "So even though earnings may not be spectacular in the second quarter numbers we're about to get, I think in the long run lower interest rates make stocks more attractive."