Source: (Photo by Spencer Platt/Getty Images) / Getty
Despite the government shutdown and potentially looming crisis ahead of us, the DOW gained 100 points today January 16, 2019. Goldman Sachs posted they had the best day in 10 years. Bank of America also did better in its regular areas but also did well in retail. How is it that Government workers and contractors are not at work, not receiving checks and the stock market is continuing to post record gains after hitting record lows in December.
This made me look at my Acorns account. A spare change investment App I use that rounds up to the next dollar whenever I use my card. Very similar to putting pocket change in a jar but this actually invest that same money and you can set it for levels of investing from conservative to aggressive. I happy I stayed aggressive during the slight downturn in December 2018 because just like Goldman I hit a record high since opening the account in 2014.
So what is happening? All the spending that took place prior to the shutdown is what is looking so well. Companies report their gains from 2018 when people were comfortable with their spending and constant good reports of employment.
JP Morgan Chase and Citigroup also report large gains from the fourth quarter a few days ago. This also played a major role in investor enthusiasm.
Sears may come out ok after filing bankruptcy in October 2018. A judge has allowed an auction to take place and the first bids came in on Monday, January 14th.
The stock market is always scary. Invest wisely and think long term unless you are day trading. Even then, you should be very very careful and do not use your rent. It is a gamble just like the lottery, casino or craps in the hallway.
@djflavashow
Sundays 2pm-6pm
