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Investors Survived Brexit And Trump, Now Rewarded With Dow 20K

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Investors Survived Brexit And Trump, Now Rewarded With Dow 20K

2016 was a tough year for investors. After the people of Britain voted in favor of leaving the European Union and putting the future of their country back in the hands of British politicians, the stock market collapsed.

As noted by Bloomberg, the Brexit outcome was initially seen as the death of the bull market — yet, the market quickly recovered.

The same scenario played out when President Donald Trump won the presidential race. Dow futures initially collapsed more than 750 points, only to recover all of the losses in a short amount of time.

And then there were major concerns coming out of China in the early months of 2016. And a fiasco involving Deutsche Bank AG (USA) (NYSE: DB) had many investors worried a major global banking crisis will be seen in the near term.

Needless to say, investors looking at the sea of red in their portfolio were aggravated, worried, frustrated and very concerned for their financial well-being. On Wednesday, investor patience and resiliency was rewarded with the long anticipated "Dow 20K" milestone.

The Dow At 20,000

The Dow Jones Industrial average rose nearly 100 points, or 0.5 percent, at to hit 20,011 within 15 minutes of the opening bell on Wednesday. Almost $2 trillion in value has been added to U.S. stocks in less than 90 days, as the eight-year bull run continues charging forward.

Granted, round number milestones for stock indices aren't viewed by many experts as reason to celebrate, and in fact, many investors have been watching the surge from the sidelines.

Dan Vaeru oversees $3.7 billion as the chief investment officer at Palisade Capital Management; he told Bloomberg that the Dow 20K could be seen as a rallying call for investors to invest more capital in stocks.

The investment pro added that many investors are underweighted to equities so the Dow hitting 20,000 on Wednesday seems like a "party they weren't invited to."

Posted-In: News Eurozone Politics Topics Markets Movers Media General Best of Benzinga

 

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