While the market has recently seen many shifts, the economy is still incredibly strong, so people should be cautiously optimistic. The ups and downs in a strong economy usually mean it is slowly growing positively. Too much short term growth can lead to inflation and big crashes. The Federal Reserve will usually raise interest rates in the case of a very hot market, and the US currently has one of the best economies in its history. But this can be good and bad, as the outlook of the market in the long term can be hard to foresee with lots of ups and downs. In all likelihood, things are looking good despite the massive drops that occurred last week.
After a record breaking bounce back Tuesday, Wednesday’s indexes showed another drop off. While these shifts can often scare or invigorate investors, the long term stability with positive overall growth is good to recognize. Confidence in investors prevents massive sell offs in the short and long term, but big ups and downs in a good economy usually will not effect the lives of everyday people. The US economy is good, and preventing overheating is necessary for a its health. Also, the US economy is as competitive as ever. While the looming trade war with China and more interest rate hikes may be problems down the line, an overall robust economy should shield people from any major problems day to day.
