March 03, 2017
March 2, 2017
By Josh McElveen
Communications and Marketing
(603) 641-7326 (Desk)
Experts say market boom may slow
Inflation, interest rates could slow record-breaking performance
MANCHESTER, N.H. - Markets have been surging since the start of the year, but not everyone is betting that the surge will last.
President Donald Trump has been trumpeting the market's performance, with the Dow setting for 12 consecutive days at one point. Financial planner Mike Paquette said the election has many investors believing that the economy as a whole is headed for brighter days.
"I think there has been, certainly, a shift in the retail investors mindset of where we are going economically, which of course gives you more confidence in investing in the markets," Paquette said.
Some economists are predicting that, barring something unforeseen, the bull ride will continue. But investors should proceed with some caution.
"We see all-time highs every day, really," said economics professor Stephan Unger of St. Anselm College. "But the question is, how long this will last?"
Unger said that although there is strong market confidence, the price of gold and silver is also on the rise, which is a strong indicator that many are expecting the bubble to burst.
"What they are expecting is inflation, so they are hedging against inflation, and the only safe haven is buying gold, silver, precious metals," he said.
Another complicating factor is the housing market. Many expect the feds to raise interest rates on March 15, which could slow home sales, but also stabilize a financial sector that may need to catch its breath.
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