The stock market is already rebounded from the home and bank crisis of 2008. In fact, while many Americans still struggle to look for a job, the wealthy are seeing the portfolios fatten again. The real question may not be, will it rebound again but, should it? The inflated market of the past and the consequences of it, should give us pause.
The stock market runs in a cyclical pattern. A large number of factors play into the cyclical nature of the market, including consumer confidence in the marketplace as a whole and the confidence in the government. If consumers see that they will have jobs, they will continue to buy products, allowing companies to stay in business, thereby freeing investors to invest in those businesses. We are a point in the cycle where consumer confidence, while not strong, is growing.
I know it will at least for a while. There is always the possibility of it crashing, but while people are still trying to recover from the problems of last time, I do not see it crashing again in the near future. Well, at least not in this year anyway.
With their being so much turmoil and fighting in the World, the stock market will definitely be impacted negative. People do not like uncertainty especially the stock market and will start to go back down because of it. I have no confidence that my investments will continue to grow and am very skeptical about buying more stock.