Thanks to former President Trump, not only is our economy back, but the stock market continues to stay strong.
Those stimulus checks? Apparently a majority of Americans have used them to invest. In fact, a new study shows that households increased stockholdings to 41% of their total financial assets in the month of April.
"Seeing such a large percent of American households in the market is encouraging in many ways, but it's also very concerning" says CPA and financial planner Bill Dendy. "We have a lot of new players in the market."
Being locked down at home, and spending less, a lot of these "new players" had extra time and money. A pandemic push, if you will.
"Covid woke up a lot of people to some the benefits and the risks of the stock market" Dendy told KTRH. But he also cautions, "at the end of the up-cycle there is always a down-cycle."
The big question now is, when will we see that down cycle? Most economic forecasters are expecting the economy to stay strong over the summer and into the fall. But inflation is starting to rise, and as the Biden administration continues to spend money, while threatening to raise taxes, you can't help but wonder when will the clock strike midnight?
Dendy says there is room for this positive momentum to continue, but the eventual down-cycle will hit the market and our economy.