Hey everyone, thanks for joining me for the first post in the new, yet o’ so familiar column, Finance Talk with Josh. Yup, if you’re a fan of Friday Finance with Josh, don’t worry, we are too! OK, so this week I’m going to go a little deeper into finance than personal budgets and credit scores. Today, I’m going to talk about the stock market, and I really hope you talk with me in the comments. So, let’s get started…
Remember That Government Shutdown? Of course!
During the government shutdown, the biggest concern was the affect it would have on the stock market. We saw news columns about an ultimate crash destined to end in a worldwide financial depression! I read articles that explained the fact that other countries are loosing faith in the American dollar as we got closer and closer to the deadlines. Some from foreign nations were even publicly criticizing at our government in ways that I would have never thought I’d see. But, we got it figured out right at the last minute, got it all paid off, and YAY! THE STOCK MARKET CAN SURVIVE AGAIN.
Now, Let’s Rewind That A Little Bit, And Think Of It From A Market Perspective.
The stock market is based on trust. If foreign investors can’t trust American debts, they won’t want to buy them! As less and less investors invest and re-invest their money in us, we would see obvious changes in the market. Only, those changes wouldn’t be that DOW closed at record highs.
So, What’s Making The Market Close At Record Highs?
Well, the truth is, I couldn’t tell you. I love finances, but I’m no financial analyst. However, in my humble opinion, this is really something to be concerned with, not to be happy with. We’ve seen aggressive financial giants take their tole on this country before, is it impossible that they could be causing the inflation some way to try and save themselves before a drop? Or, is there a reasonable explanation?
My Best Guess…
Now, I’m not going to sit here and tell you that doom is here. There’s got to be a reasonable explanation for this too. It’s my hope that the high Jobs numbers are what’s causing the huge spike in DOW and other markets. But, that doesn’t explain why there were pretty good closing days before the jobs numbers came out. Personally that’s one thing I can’t explain. However, that’s one of the reasons for the new name of the column, Finance Talk with Josh! Maybe you can give me your ideas.
What’s My Next Move?
Well, currently, nothing. I’m going to keep doing what I have been doing because it works. At least, until I see reason to change my style of investing. However, when that happens, I may consider something like peer to peer investing. I know that consumer ability to pay relies somewhat on the market. However, in high volatile times, I may want to diversify a bit to keep at least some of my money safe from unexpected drops.
What Do You Suggest?
Here are a few questions that I’d like for you to answer in the comments.
What’s your take on why we’ve seen record highs in such a low trust time?
Should I continue to keep all of my money in the market or diversify using some other form of investing?
Oh yea, and what do you think about the new brand Finance Talk with Josh as compared to Friday Finance with Josh?