Wall Street Gains: Spring Cleaning for Our Finances?
With Wall Street having one of its’ best weeks in years, and the Dow flirting with new record yearly highs almost every day, you might think local consumers are feeling a little bit better about the future of the U-S Economy.
Consumers are spending, companies are not cutting as many employees as last year and even the critical housing markets are seeing new gains.
In fact, today’s consumer sentiment numbers are at a year high after seeing 6 months of straight gains.
That’s why investors have been boosting the markets and pushing the dow to new yearly highs.
But while Wall Street may be seeing solid gains, on the streets of South Florida, small investors are not so sure big businesses gains are effecting them much at all. Westons’ John Carbonell says he can see improvements in the local economy.
But he’s worried they may not last. He knows the stock market can go up and the stock market can come right back down again.
Carbonell says ” It is improving, but I think it’s just the banks boosting the markets for some gains, it’s not real, it’s like castles in the air”.
It’s almost 3 years exactly since Wall Street hit bottom back in March of 2009.
The Markets saw major losses almost overnight that dropped the Dow into the 65-hundreds.
Some financial planners say now is a good time to enjoy the latest market gains and consider cashing out the winners and diversifying portfolios.
Lane Jones of Coral Gables’ Evensky and Katz says “It might be 2 steps forward and one step back. We typically see a boost this time of year, only to see a softness develop over the summer. But we are seeing now companies reporting decent profits and that drives the stock market”.
Some financial planners say during a market high like we’re seeing now, it might be a good time to look at your portfolio and see if you can “Sell High” to rebalance your investments and in effect consider a “Spring Tune-Up” of your family finances.