Expert: Don’t be fooled by high market numbers
SUNBURY — As the stock market has reached an all time high this week, a local expert says that does not mean it is the perfect time to go ‘all in.’ Rick Wible, founder of REW Financial in Lewisburg, says he thinks the biggest reason the stock market is soaring is due to Ben Bernanke’s reign as the federal reserve chair coming to an end.
“Janet Yellen has been the nominee. It is expected that she’ll be the next fed chief. She is also considered very ‘dovish,’ meaning not likely to reduce the fed bond buying in the near term. So that is what is keeping liquidity in the market. That’s why I think it is taking a move up here a little bit… how long that lasts is another story.”
Wible says even though the markets are high, that doesn’t mean you should quickly throw your money into the mix. He said he believes it is a financial bubble. He said these fluctuations have occured in the past and have always come back down.
“If you’re a new investor to this, I certainly wouldn’t jump all in at one time. People see these returns and think they can get in and make what they’ve made over the past year, and that just doesn’t happen. You don’t want to try to chase your returns.”
He said, “I would be cautious on new money going in. If you have some profits on things I would look to maybe take some of that off the table. We’ve got this whole debt ceiling debate going to happen here again in the next few months, so I would be a patient investor right now.”
Wible said the technology and auto sectors are doing quite well. The Dow Jones has reached over 16,000 for the first time this week. (Codi Jade)