As America transitions into 2018, the national economy continues to soar. The most noteworthy indicator? The stock market.
The stock market is an important component of the American economy. It’s a structure under which businesses gain access to capital by providing investors with partial company ownership. Without it, modest-sized businesses would have a difficult time gaining the necessary investment to grow into a flagship brand. For those of us not directly involved in the market, a strong stock market is a credible predictor of where the economy is heading—and more likely than not—your retirement savings depend on it as well.
The Dow Jones Industrial Average—commonly used to gauge the health of the overall stock market—recently broke 25,000 points, an increase of roughly 35 percent since President Trump’s election in November 2016. This growth is unprecedented. For comparison, it took 14 years for the market to grow from 10,000 points to 15,000 points, and another 3.5 years to reach 20,000.
This year has been a whirlwind for the economy—with job creation numbers up, a low unemployment rate, and business optimism through the roof. The stock market is yet another indicator of this economic success.