EUGENE, Ore. — The Dow Jones Industrial Average made history on Wall Street, reaching 16,000 points for the first time ever.
Local financial adviser Cary Richardson says this is a number that’s positive for everyone, not just investors. He says the 26-percent increase over this year is showing where the economy is heading.
“It’s a good indicator that the economy’s started the recovery and things are getting better. We may not have felt it as much here locally or personally depending on each person’s situation but it’s good news overall,” Richardson said.
Richardson says the Dow Jones was at about 6,000 points just five years ago. Investors who stuck through those tough years are seeing their choice pay off today–that includes people with 401k’s that took major hits back then.
“The people who stayed invested in 2008 when things were bad and in 2009, they’ve earned their money back and they’re back ahead of where they were back then,” Richardson said.
Richardson says as far as he and his clients go, the numbers are encouraging.
“All of my clients are really happy right now because their accounts are up for the year, and they’ve done quite well for this year and even last year too. The sentiment is joy because their account value is better,” Richardson said.
Although all signs are pointing up, Richardson says to still keep in mind that the points are just a number and to evaluate plans carefully.
“Stay focused on your long-term goals, and make sure you’re buying quality stocks and quality investments and sticking with your plan. Don’t let the overly positive or overly negative news of the day de-rail that plan,” Richardson said.
Richardson says quality stocks include companies that are household names and have a long history, companies that won’t disappear through a recession.