Wall Street continues to make history.
The Dow Jones Industrial Average hit a new high yesterday, reaching 14,296.24 at the closing bell. Houston financial planner Richard Rosso told KTRH that if you are expecting this to be the beginning of a long, upward climb you are wrong.
“We are not at the beginning of a new, long-term bull market in stocks. Corrections will happen, and they could be fierce,” Rosso said.
Author Paul Mladjenovic told KTRH expecting the markets to continue to rise would be foolish.
“I’m not predicting when it’s going to happen, but if the economy doesn’t show improvement, the potential pullback could be severe,” Mladjenovic said.
So how long do we have before we see a correction? Mladjenovic isn’t quite sure.
“It may have legs in the short term. But on the longer term basis I get concerned,” Mladjenovic explained.
Rosso says one reason we are seeing the markets go up is because of low rates from the Fed. His advice, especially to 401K investors, is to be conservative.
“The key is to keep a level head and save. Your greatest investment is going to be you, regardless of this move in the market,” Rosso explained.