A recent CNN poll found that for the first time since 2007 a majority of Americans think things are going well in our country--albeit a very slim majority; 52 percent of surveyors said things are going well. In line with this statistic, economic sentiments have improved and more Americans believe the economy is starting to recover.
Our economy has shown growth in 4 out of the last 5 quarters of 3.5% or more and unemployment has been falling modestly to its lowest level in six years. The major stock indexes such as the S&P 500 and the Dow Jones Industrial Average are at all-time highs and it is easy to tell yourself that markets are too high and you're better off keeping money in a savings account. However, it is also true that the all-time highs reached by these indices are supported with all time high corporate earnings and extremely high free cash flow figures.
The U.S. is a wealthy nation and many folks have built and preserved great wealth by owning quality companies with strong cash flow and future growth prospects. Although you won't lose money in a savings account, you may be sacrificing your ability to grow your wealth over time. Our economy is improving and Americans are beginning to see that. Don't miss the chance to build your retirement nest egg because you read an article saying that it's not the right time to own quality companies.
Ethan Wade, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).