The Dow Jones Industrial Average closed out the quarter yesterday with a gain of over 6%, its third straight quarter in a row of positive returns. The jobs picture keeps getting better, the recession is over. So why are so many investors worried that the stock markets is a dangerous place, with risk around every turn and a sheer cliff ahead?
Maybe it's because the average investor saw a sharp drop in net worth during the financial crisis with a rebound that was much more ponderous. Maybe it's the headlines about poor Wall Street bankers going without a bonus, having nothing more than their half-million-dollar base salaries to console them. Maybe they think the game is rigged, where you can front-run your employer or wreck your company and still get a bailout.
Recovery from recession is like sunrise. That the sun comes up above the horizon is indisputable. Some can't see it because of clouds. Others, still in the long shadows of morning, may be in the dark. But as the sun reaches its apex, light and warmth are the result. The recession is over. The recovery is here.
(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).