Will the Wall Street Rally Continue? [AUDIO]
NEW JERSEY 101.5
Even with the recent government shutdown, continuing uncertainty in Washington, and less than stellar employment news, the stock market keeps climbing.
The Dow Jones Industrial Average reached a new record high yesterday.
So why is this happening, and but what happens next?
"People should remember the market is not an accurate barometer of political discourse, the market is intended and is a barometer of corporate health and economic health," said the President of Mercadien Asset Management, Ken Kamen.
He pointed out it's not surprising the market is surging because despite all the drama and bickering in Washington, all the evidence is that the economy is starting to do better.
"Even though it's at a slow rate, not a rate that we'd like to see, but better nonetheless. And corporate earnings keep confounding the naysayers by turning in positive and positive and positive quarters," Kamen explained.
At the same time, he stressed that you're seeing economies around the world starting to kind of get back on their feet with Europe showing signs of improving and Japan coming out of a 20-year malaise.
"People that are nervous, feeling they shouldn't buy in the market because the market is high could have said the same thing 1,000 points ago and 2,000 points ago and 5,000 points ago," Kamen said.
He stressed that people who react to what the market does from day to day or week to week are driving themselves crazy.
"If you don't have a long-term approach, then you're gambling, You're basically trying to time whether you should put the money down on red or black, and then you spin the wheel and find out what it's going to do."