SPRINGFIELD, Mass. (WWLP) – For the first time this Millennium, the three major U.S. stock indexes closed at record highs on the same day. That hasn’t happened since December 31, 1999.
The Dow Jones Industrial Average closed up .1 percent from its last record high July 20, 2015. That was less than a month after the world markets plummeted following Brexit: Britain’s vote to leave the European Union.
Financial Adviser Mark Teed said major stock market changes are fueled by fear, but they don’t last long. “August to October is usually the most dangerous time of the year because we’re starting to get into the new projections for 2017, and there will be lots of talk about global recession, so this could be a little bit of a dicey time, but right now let’s just admire it and enjoy it,” Teed said.
New numbers out Friday morning showed that retail sales were stagnant in July. Despite an improving economy and lower oil prices, consumers were not spending as much as economists predicted they would on items like clothing, electronics and even dining out. Strong gains by energy companies fueled the record high closings for S&P 500, Nasdaq and Dow, but Friday’s economic outlook slowed that momentum.
“I think people are being a little bit more careful now because they have to be. Things are sort of getting better with the economy, but very small changes,” said Elijah Elmore of Springfield. Teed said when making financial decisions, think of investing in the long term, not the short term.