The stock market broke records at the beginning of the first quarter of the stock market. This was due to over-speculation of the Trump administration’s business-friendly policy.
Just the idea of less regulations and lowering taxes had investors ready to place their money into places they wouldn’t otherwise place their money.
The quarter for the Dow Jones Industrial had the first close over 20000 and then 21000. Despite the healthy return of 4.8%, investors are cautious and are gravitating toward bonds instead. Based on Investment Company Institute data, over $112 billion flowed into funds that invest in bonds, while $34.5 billion went to stocks.
Despite the overwhelming proof that investors have in the past over speculated markets, and put all their belief into the market turning their way. This time around they seem to be less willing to go for more like they did in the past. In the last quarter for the stock market, the market not only broke record, but also companies like Bank of America finally show recovery after the Great Recession.
Other banks like J.P Morgan and Goldman Sachs closed at record highs, but despite this investors are still preferring companies bond options instead of stocks.
Charlie Reinhard, the chief portfolio strategist at MainStay investments in New York said that investors are: “trying to look at the world in a more balanced way…They’re trying to be cautious and careful.”
The S&P 500 index rose 5.5% and the Dow rose 4.6%, which are similar numbers to the increase in U.S. Stock funds.
This is good news no matter what side of the political spectrum one person is a part of.
An improved economy is what this country needs.