The thing that stock markets hate is uncertainty. Now that most federal and state elections are decided, there is less uncertainty over the direction the country will take.
The Dow Jones reached a low point in March. For the S&P 500, the low point was Oct 14. However, the S&P has gained about 12% since then. That contrasts to the best online money market funds that earn 3% interest. My bank is only paying 0.3% for all but the largest accounts. With inflation around 7.5%, savings are losing buying power every day.
Between Black Friday and Cyber Monday, consumers spent over $20 billion dollars. In spite of higher prices, consumers were still inclined to buy, enticed by sale prices after Thanksgiving. However, for those who purchased using credit cards or buy now pay later deals, a day of reckoning will come.
So for now, most investors see stocks as the most effective place for their money. That is why the markets are going up. However, with many companies laying off employees, even a few weeks before Christmas, there is no way to predict with certainty what the future will bring.
The Dow Jones reached a low point in March. For the S&P 500, the low point was Oct 14. However, the S&P has gained about 12% since then. That contrasts to the best online money market funds that earn 3% interest. My bank is only paying 0.3% for all but the largest accounts. With inflation around 7.5%, savings are losing buying power every day.
Between Black Friday and Cyber Monday, consumers spent over $20 billion dollars. In spite of higher prices, consumers were still inclined to buy, enticed by sale prices after Thanksgiving. However, for those who purchased using credit cards or buy now pay later deals, a day of reckoning will come.
So for now, most investors see stocks as the most effective place for their money. That is why the markets are going up. However, with many companies laying off employees, even a few weeks before Christmas, there is no way to predict with certainty what the future will bring.
