On Wednesday, the Dow Jones industrial average (INDU) closed at an impressive 10,680.7 points, rising 0.5 percent, or 53 points. This marked the highest closed for the Dow since Oct. 1, 2008; however, the market at a whole still isn’t completely stable.
Stocks Fluctuating a Bit
After a one-day selloff on Tuesday, investors on Wednesday began snatching up tech and financial shares, this despite the possibility of Google shutting down its China operations. Stocks did fall on Tuesday, but rose again on Wednesday, with the S&P 500 index (SPX) rising 9.5 points, or 0.8 percent, to close at 1,146 and Nasdaq composite (COMP) gaining 26 points, or 1.1 percent, to close at 2,308.
Making Gains Won’t Be Easy This Year
Portfolio manager at Glenmede, Robert Siewert, who was interviewed by CNNMoney.com, noted that gains will be harder to come by this year. He explained after the huge selloff from investors after the financial crisis, we were lucky to have a huge recovery.
However, now that we’re back at home base, many people will be more interested in simply working with their liquid funds, rather than making risky investments with no promise of gains. The only problem is that without investments, the market as a whole will make no gains.
He explained the momentum of the market is good, but still needs a push toward the fundamentals of investing, something we lost after the financial crisis. He hopes that seeing improved company profit reports will get the market back on the right track.