Stock market continues record-setting pace

Stock market continues record-setting pace

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LUBBOCK, Texas -

For the first time, the Dow Jones Index closed over 25,000 Thursday. Friday it increased another 220 points. 

It is a trend President Trump has been taking credit for on Twitter, he said it was part of the Make America Great Again agenda. That credit could be misplaced though. Mark Bass, a financial adviser with Pennington, Bass & Associates said the success follows a trend over the last few years.

"If the economy does well whoever is in office says hey, we did that, or if it doesn't do well it was the last guy, but really neither one are correct because it really has more to do with, like the stock market, has more to do with corporate earnings and the recent increase over the last several years really, has been a result of increasing corporate earnings," Bass said.

He said the Republican tax plan does help growth but it is not expected to last past this year.

"The lower tax bills that some of the middle income and middle upper income folks will have, they'll probably spend that money and our economy is driven 70 percent by consumer spending so that'll be good for this year but I really think that's going to kind of a one year wonder. I don't think you're going to have the same benefit next year and the year after."

Despite the optimism surround the stock exchange and the inflated evaluations, he does not expect the growth to last forever, but he does not see an end in sight.

"We're in like over a hundred months of the current expansion from the last expansion from 2008. The average expansion period after a recession is about 60 months, so just five years. So we're way long into that. However, the expansion has been so slow that it's still justifiable so we don't see a recession coming in the next 12 or 18 months but still the evaluations are out of whack."

With that in mind, Bass said save. Save for the future to ensure you do not have any problems should a recession arise.

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