Quite a historic day on Wall Street as the DOW Jones Industrial Average hit its highest level since its inception 117 years ago, surpassing the previous high in 2007 when the stock market was doing exceedingly well. Anyone who got into the market when it hit bottom four years ago, and stayed there, had good reason to celebrate.
The DOW jumped nearly 126 points t0 14,263. Gains represented a remarkable comeback for the stock market. Economist Robert Brusca told PIX 11 News he feels the market has benefitted from the billions of dollars the Federal Reserve has pumped into the economy. That’s kept interest rates low and made stocks the best investment going. Brusca is encouraged by the market rally but doesn’t see it necessarily as a signal or harbinger of things to come. “It’s up in the air as to where we go from here,” he said. With unemployment still near 8%, the economy has not fared as well as the stock market. The market high comes at a time sequestration is expected to slow the economy and keep unemployment higher. “Sometimes the rich get richer, and the poor are not very affected,” observed Brusca. He feels people with pensions won ‘t be affected directly and those with 401Ks should reap the rewards of the bull market.
Brusca, the chief economist for FAO economics, feels that unless the market shows more fundamental growth, there could be more declines ahead. Even with stocks trading at or near record highs, they’re still seen as good investments.