Investing in the stock market is now more hit or miss than at almost any other point in history. While stocks have been climbing recently, the market is directly tied to most of what the Federal Reserve news says. Keeping an eye on the breaking news and updates that come from the Federal Reserve is crucial when deciding if you want to invest in the stock market or not.
From CNN Money:
“Stocks gained more than 1% last week and continue to march to record highs. Some key psychological levels are in sight. But will the market keep climbing? That may depend on more news from the Federal Reserve and how much consumers are spending.”
The Dow Jones Industrial Average is closing in on 16,000, while the S&P 500 is inching toward 1,800. The tech-heavy Nasdaq is nearing 4,000, a level not seen since September 2000, just months after the tech market collapsed.
Ongoing stimulus measures from the Federal Reserve have fueled the bull market for the past several years, and investors were encouraged last week by comments from Janet Yellen, President Obama's nominee to be the next Fed chair. Yellen, who may be confirmed by the Senate as soon as this week, told the Senate Banking Committee the Fed will continue to support the economic recovery.
So, will these ongoing stimulus programs keep the stock market in good shape? Will it keep regular people interested in investing in the market? What will happen if the Federal Reserve pulls some of these, if not all, or the stimulus programs because they think the economy is ready?
These are all questions that most of us ponder, and rightfully so. Many of us were investing in the stock market before 2008, and more willing to take that leap of faith and try to get in on a good stock. Not so much now, as Americans are more timid to get their feet wet in the market for fear of losing too much money. This is directly connected to what happened in 2008.
So, should you continue to invest in the stock market? Well, that answer is tied up in several different answers, so what you do will be based on your situation as well as how you feel about the prospect of losing money. Either way, make sure you talk to a financial specialist about it.
Original Article Source: CNNmoney.com