Stock Market Optimism Soars
While most markets have been rocky the last few months, the stock market has quietly rallied. “It’s been a stealth bull market,” Mike Florez of Florez Trading told AgDay's Clinton Griffiths.
Florez said the sideways movement of the stock market during the past few years has caused many investors to step away from stocks. But those who left the stock market for bonds and similar investments might be kicking themselves now, according to Florez. Right now, there's lots of optimism that the stock market will continue to climb, ultimately boosting the U.S. economy.
“I think you can be optimistic on the stock market which will change a lot of other things,” he said. “If the stock market goes higher, the U.S. economy is going to take off again.”
Florez explained a few things that would change with a strong stock market. He said real estate markets will recover, interest rates would move higher and the change would likely be bearish for gold.
With electronic trading, Florez said the markets are more complex than they used to be. “Things that used to work in the past don’t work anymore,” he said.
Historically, stock markets have experienced a lull in October, particularly during presidential election years, but Florez said that’s not likely to happen. In a marketplace that has only received negative news the past few months, stocks have continued to rise, increasing his optimism that they won’t slow down any time soon. “If bad new doesn’t break it, what will good news do?” he said.