Written by Rajiv Geffert
There is something that is trending in the American public and that means good for our whole economy. The stock market has reached an all time high but what does this mean for Americans and America in general some may ask. Some economists say that this is great for the the economy and that the only place we can go is up. They say that “the rally is just getting started”. There however are some people who say that the only place to go is down and that we should be preparing for an economic blow. In the article it states that “Both the Dow Jones Industrial Average and S&P 500 ended at historic highs with the S&P finally surging above 1576, the previous record set in October 2007.” There is no telling what will happen to the stock market until it happens. This however doesn’t mean that it is going to plummet down into a spiraling recession like before. It also doesn’t mean that it’s going to go up by an astronomical percent. In the stock market game, there are two kinds of players, there’s not really an in between. There are bulls and bears. Both of them have very different viewpoints on the stock market and the economy as a whole. Bulls are when people are buying stocks and the market is going up. A bear market is when people are selling and holding on to stocks and the market is going down or staying at a steady rate, not increasing or decreasing. You can look at this as a realistic standpoint that bears are pessimists and bulls are confident in their game and that the stock market is just going to keep going up. As an individual you can take this record breaking stock market and invest or hold off, whatever you really feel comfortable with.
Some people may also ask why and how the stock market keeps going up. There are some obvious and not so obvious answers and some predictions too. Some people think that the FED has rigged the stock market and that they keep giving out money to people so that they can keep buying stocks thus increasing the US economy as a whole. People say that the FED isn’t losing anything either, they say that they are just creating new money so in essence that is causing inflation. It is estimated that the FED creates about 4 billion dollars a day and some of that goes to stocks and some of it goes to equity which helps keep the stocks high and promotes people to buy stocks. There is not a clear answer to why this is thought to be but it is said by an expert at Forbes which is an economic genius when it comes to just about anything. So in conclusion the stock market is rising and it can be observed that it is a good or a bad thing who knows. It’s really up to you whether you’re a bull or a bear, you choose.