All eyes are on Wall Street as The Dow crossed the 22,000 mark. Financial advisor Brad Allen talks with Milwaukee’s WTMJ-4 about what the milestone means for investors.
Traders on the floor of the New York Stock Exchange cheered Wednesday as the Dow crossed 22,000. It’s an important psychological milestone because it shows how far we’ve come in recovering from the Great Recession. While the Dow is the most-watched measure of the stock market, it is not the most all-encompassing measure. The Dow tracks 30 of the largest companies in the US, while the S&P represents 500 stocks. So, while hitting the 22,000 milestone signals economic improvements, it does not reflect the business landscape of the country as a whole.
Your 401(k) will fluctuate with the ups and downs of the market, so if you check your balance, you may notice an increase. The Dow is up 11% for the year, and 236% since the the Dow hit rock bottom back in 2009 during the Great Depression. If you invested $10,000 that day, it would be worth $33,600 now. This is a good time to take a look into your accounts and know what you own, but it may not require any action. Your investments should be diversified and have appropriate risk for your age and how close you are to retirement.