Despite Dow record, local experts urge caution - FOX5 Vegas - KVVU

Despite Dow record, local experts urge caution

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LAS VEGAS (FOX5) -

The Dow Jones moved into uncharted territory on Friday, climbing to 15,000 before ending the day at 14973.96.

While it was a first for the Dow, it wasn't unexpected.

"We've seen some good economic news in the last week, and in addition to that, interest rates are really slow, so a strong stock market is what we expect," said UNLV economics professor Stephen Brown.

Over at Wells Capital Management, managing director Kevin Page agreed.

"Besides the number 15,000, it's no different than any other day," he said.

The catalyst for the historic number was good economic news since the start of the year, according to Brown. That included good gross domestic product numbers, solid consumer spending, a decline in the unemployment rate and a decline in the initial claims for jobless benefits.

While the stock market is enjoying a healthy rise, both experts warned that the market is volatile at the best of times.

"The stock market moves a lot more than the economy does and sometimes runs up ahead of the economy. Sometimes it leads down when the economy isn't turning negative," said Brown.

Page agreed. 

"Nothing ever goes forever. That's why I caution people. The stock market does well and continues to do well but you have to have the right risk profile," he said.

Brown predicted the economic news for the second quarter of this year will not be as good because of tighter government spending caused by the sequester. 

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