Rochester, N.Y. – The closing bell on Friday rang out over 14,000 - the highest number since the financial crisis.
“I think it was very encouraging,” said Dennis Peel, who is hopeful this number is a sign of what is to come but is still cautious about the long term affect on his 401k.
“I think that we should also be careful. It's possible that it could start going back down, too.”
Financial expert George Conboy of Brighton Securities anticipates Americans will be cautious, but says markets at this level can be a plus for the economy.
“In one respect 14,000 on the DOW is just a number,” said Conboy, “but what high numbers like this can do is drive individual investors to be more optimistic and invest even more. That can become a self-fulfilling prophecy and you can expect to see markets move higher.”
Long-term financial markets are driven by corporate earnings, said Conboy.
“If the economy is on the upswing, it's likely to continue on the upswing. In the short run, however, numbers matter,” said Conboy.
This market move means the individual investor is back, according to Conboy.
“In the short run, the numbers we see in the stock market do tend to drive individual behavior. A little more optimism likely means higher stock prices throughout this year,” said Conboy.
But not everyone is taking this move as a time to invest, but rather hope it's a sign of the times.
“I'm in the markets for the long term, I don't look at them day to day or month to month,” said Bob Costigin, a long term investor, “so I'm not buying and selling a lot - I just keep good stocks.”
