As Wall Street reaches records, what does that mean for Main Street?
Wed, 06 Mar 2013 23:35:29 GMT —
The Dow Jones industrial average pushed further into record territory, a day after surging past its previous all-time high.
Tuesday's surge beat the previous record set in October 2007, a year before the peak of the financial crisis.
But many feel there's a disconnect between Wall Street and Main Street.
Financial advisor Patrick Munro with Northstar Financial Advisors (northstarnavigator.com) said before everyone gets excited about the good news, it's important to remember the Dow is not the whole market, it's only one indicator.
Anna Shelton has been unemployed for nearly a year. She said when she heard the news about the Dow Jones reaching an all-time high this week, she didn't really care.
"For myself, you know, it doesn't affect me in any way. I think it's wonderful that this is going on, but as a common everyday person it doesn't affect me," said Shelton.
Munro says that's the case with most Americans.
"The average person on Main Street feels out of control. There's nothing that they can look for because they're not included in the mix," Munro added.
However, Tom Graber is happy to see the market turnaround and he hopes it lasts.
"We're retired and I have a fairly sizeable portfolio of stocks and so I enjoy watching the Dow and the other averages go up," said Graber.
But where the market goes from here isn't as much of a concern for Shelton. She's just worried about finding a job and really wants the economy to turn around and trickle down.
"The people around me in this county right now even, their lives aren't getting better you know and I see it everyday," said Shelton.
Munro said there is some good news even if you don't own stocks. Because of the wealth effect, if investors feel better about their wealth, they're more likely to spend it.