BOARDMAN, Ohio (WYTV) – There were more records Thursday for stocks, which keep climbing. The Dow crossed the 28,000 point level in November and the Nasdaq just hit 9,000 for the first time.
“Tesla today, their stock is up again,” said Brian Laraway, with Bury Financial Group.
Wedbush analyst Dan Ives raised his target stock price on Tesla by $100 to $370. That kind of optimism is fueling the stock market climb.
The major indexes are heading to year-end with the best gains in years.
“Corporate profits are up and the average consumer, which is almost 70% of our economy, is out spending money,” Laraway said. “You and I, the consumer feels really good and they’re out there spending money.”
Unemployment is low. Workers are getting raises and some are even saving that money.
There is also a wealth effect as people feel richer, seeing balances rise.
It’s much different than last December when rising interest rates spooked markets. It was the worst December since 1931.
Now markets are at all-time highs.
Laraway suggests reassessing your portfolio.
“Maybe sell a couple of those winners,” he said. “It’s hard to do. Maybe sell a couple of those winners or pare them down and get into a couple safer investments, we’ll say.”
Investors have been choosing to ride the wave. Apple stock is at an all-time high. Amazon had big holiday sales. People still believe in Microsoft.
But while it’s fun to watch the winners, keep in mind — watch closely and tread carefully.
“We know markets move up, markets move down,” Laraway said. “At some point, we’ll have a correction. They happen all the time but it is nice when things are working really well.”
The Dow is up over 20% this year, being held back by Boeing’s troubles. The Nasdaq and S&P 500 are up over 30%.