Local financial experts react to record-high Dow

By  | 

SIOUX FALLS, S.D. (KSFY) - Just eight years ago, the market was in full recession, and the Dow Jones Industrial Average was trading at record lows.

On Wednesday, it closed at a record-high, eclipsing 20,000 points for the first time.

The Dow is up nine-and-a-half percent since Donald Trump was elected in November, something that hasn't caught financial guru's off-guard.

"We don't know how long they will continue to go up certainly not forever at some point it will come down, and they will go up again," Robert Wright said. "That's how the stock market is."

Professor Robert Wright is the Nef Family Chair of Political Economy at Augustana University.

He says it was just a matter of time before the Dow rallied past 20,000 points, and while the presidential election may be helping things, it's not the only reason.

"The stock market is always going to revert back to those core fundamentals, which is corporate profits, which are a function of things like economic growth, productivity growth," Wright said.

"A lot of optimism, if the current administration actually does what it says it's going to do, and they appear to be, my guess is we are going to have a very nice run," John Haller said.

Haller is a financial planner with the Compass Financial Group.

He said investors are focusing on the promises made by Trump during the presidential campaign.

"Less regulations, less taxes are going to tend to be good for the market, historically," Haller said.

"You should try to stay away from the psychology of it, and focus on the fundamentals, those economic indicators," Wright said.

Both Wright and Haller said regardless of how the market is trending, it shouldn't impact any retirement and future investment plans.

If you're thinking about making big moves when it comes to your investing and retirement accounts, don't be afraid to get in touch with a financial advisor to help guide you through the process.