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Dow Soars: Too Late To Invest In Stocks?

By: Kris Schuller
Updated: March 6, 2013
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GRAND CHUTE, Wis.  (WFRV) A day after surging past its previous all-time high, the winning continued for the Dow Jones industrial average.  The Dow closed up another 42 points to close at 14, 296 on Wednesday.  It appears as signs of our economic recovery continue, investors are returning to the markets. Good news for everyone's retirement fund - but how long will it last?

  

For the last four years, Kathryn Carlson has been watching the Dow Jones industrial average slowly work its way back. However, this Grand Chute financial advisor for RBC Wealth Management says the rally underway is not nearly as volatile as during the start of the current bull market.  And that's a good sign.

 

"You'd see the market up 600 points, down 1,000 points kind of thing," Carlson said. "We're not seeing that, a lot more stability and a lot less emotion."

 

For eight straight weeks, investors have poured billions of dollars into stocks. That is the longest inflow of money in nearly two years and its boosted stocks by 9 percent this year alone. Traders say people who fled the market years ago have decided it's time to come back

 

"The investment money we're seeing coming back into the stock market is money that was scared away because of the financial crisis four or five years ago," said Ben Willis, a NYSE trader.

 

"You feel a lot better when you know your investments are increasing in value instead of decreasing in value," Carlson said.

 

That added confidence is a byproduct of stronger corporate earnings, a recovering housing market and a slow increase in hiring. Carlson says things are good, but they could be better.

 

"There are more jobs, but they are growing at a very slow pace and corporations are still uncertain," Carlson said.

   

If Congress can get its fiscal house in order, Carlson thinks consumer discretionary spending will increase as companies roll out even more new hiring. It would help create an even healthier economy - and in turn more good days for the stock market.

   

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