SPRINGFIELD, Mo. (KY3) - It was a record-breaking day on Wall Street on Wednesday. The Dow Jones Industrial Average surpassed 20,000 points for the first time in history. Investors are excited, and experts said the gains are thanks to policies laid out by President Donald Trump.
"It's just important to stick with your strategy, and don't get too wrapped up in the emotions of the market," said BKD Wealth Advisors chief investment officer Jeff Layman.
The Dow Jones average is up more than 1,700 points since Election Day. Layman and others saw the record-breaking day coming and credit it it in part to the new administration at the White House.
"The primary thing that has impacted the financial markets has been the prospect for tax cuts: both corporate and individual tax cuts," Layman said.
Experts point out stocks have risen for several years despite company profits not growing much. The record-breaking climb indicates faith profits will rise due to Trump policies, including tax cuts, investment in infrastructure, and deregulation. However, possible delays in those polices being implemented could lead to a market correction in the meantime.
"We need those earnings to catch up with stock prices a bit, and there are some signs that's beginning," Layman said.
Also happening now: low unemployment. That combined with stock appreciation puts most families' balance sheets in a good place as investors continue to watch for what will happen next.
As for big life decisions, like buying a house, experts expect mortgage interest rates to climb slightly higher yet this year (likely less than a point) but say it is still a good time to invest in a home.