The Dow has done it. On Wednesday Jan. 25, the Dow hit a record high of 20,069 amid celebration from broker-dealers and investors alike. The 20k mark is an important milestone for the industrial market index. It not only represents the U.S. economy’s turnaround following the recession, but also the wave of stock market optimism riding on President Trump’s election. While this is certainly historic for the Dow and the U.S. economy itself, this milestone has been met with wary optimism by economists and investors. The election of Donald Trump has certainly spurred stock activity, with the November results sending an upward surge in market indices points. However, the Federal Reserve’s record low interest rates and 8-year stimulus package have set much of the pace for the recovery.

Investors Gauging 2017

Although the stock market’s rising optimism has been a boon for investors, it’s further growth depends on a number of potentially serious factors:

• Global-political shifts
  • Global politics have a huge effect on U.S. investments. There is a lot happening on the international stage that investors need to be wary of.
• Future U.S. trade regulations/restrictions
  • President Trump’s policy on international trade is still being rolled out. Already, the U.S. has withdrawn from the Trans-Pacific Partnership and more trade regulations are stated to follow. It remains to be seen how these new policies will affect investment markets.
• Global market shifts
  • The U.S. economy is tied to the global economy. A crash or serious drop in global markets could spell trouble for U.S. stock investments.

While investors should remain optimistic about the future, caution should still be exercised. Here are some tips for for safe investing so you can protect yourself from unforeseen downturns.

• Review 2016 investment statements – what were sound investments, what weren’t?
• Analyze top performing stocks from 2016 to apply to potential trends for 2017
• Thoroughly check out any new investment opportunities before committing
• Make sure to have a diversified investment portfolio

Other Resources

• For more investor-preparedness tips for 2017, check out this bulletin from Investor.gov
• Read more on the Dow 20000 rally in this CNN Money report
• Contact Savage Villoch Law, PLLC today for more info on protecting your investments

Equitable Securities Trading Over Efficient Securities Trading

The NYSE’s decision to expand floor trading comes in contrast to most securities brokerage firms decision to opt for electronic trading. Electronic trading’s automated exchanges make it an efficient means of trading. Through electronic trading, stocks and securities are distributed on a first-come-first-serve basis. Despite electronic trading’s popularity for providing fast trading solutions, it is not without its downsides. Critics say electronic trading creates an uneven playing field for investors. Beginning investors or ones with less access to electronic trading technology are out-paced by high-powered firms.

Accessibility for Investors

NYSE executives state their hopes to establish their trading floor as an accessible and equitable marketplace to trade and invest. In addition to the wider selection of securities available to investors, NYSE executives hope that expanded floor trading will reintroduce transparency into securities trading. While speed and efficiency are important components, sole reliance on those factors mean an increased risk of fraud. Conversely, investors must also be aware of risks associated with the increase in floor trading availability. Investors always need to make sure of performing due diligence before closing on any trade.

A Resource for Investors

Savage Villoch Law is here for our clients. If you have more questions on what this change means for securities trading or general investing questions, contact our expert team today and we will make it our goal to get answers for you.