Market more optimistic about near-term future, Grand Junction financial expert says
The Dow Jones Industrial Average closed above 10,000 points Wednesday for the first time in a year.
That’s a positive sign, according to financial adviser Gary Nagy of investment firm Edward Jones, 225 N. Fifth St.
“Usually the stock market is forward-thinking,” Nagy said. “They are looking six months down the road. The market is more optimistic going forward.”
Still, the 10,000 mark is a far cry from the point levels stock brokers celebrated in the first half of 2008, he said. Kent Shettler, an adviser with financial services firm Raymond James, 200 Grand Ave., said he hopes Wednesday’s bench mark won’t make market watchers too exuberant.
“It’s nice to see some positive earnings estimates, but let’s not let emotions drive the market,” Shettler said, referring to the JP Morgan earnings statement released Wednesday that turned out better than expected and may have resulted in the stock market spike.
Excitement may have helped Wednesday, but Shettler said true recovery in the market will happen only if stock values correlate with what companies earn, not just good news.
Corporations and especially banks with positive earnings reports, fewer cost-cutting measures at businesses, more consumer spending and better housing markets in certain parts of the country is all good to hear, said branch manager Larry Jones of Financial West Group, 145 Grand Ave.
“Will it continue?” he asked. “It will be a slower climb going forward.”
In the meantime, Nagy said people who pulled their money out of the market may have missed out on recovering stocks since March, but he suggested investors enjoy the reward for their patience.
“I would tell them to stay the course,” he said.