Dow closed at record high, expert weighs in on how long the growth lasts

Once again, the Dow Jones Industrial Average closed at a record high since January, at 26,743.50 points. If you look back at this time last year. you’ll see the index was below 23,000 points.

“So that’s about a 17 percent appreciation over just a course of a year,” Tatiana Bailey, Director of UCCS Economic Forum, said.

Bailey said the growth shouldn’t be happening.

“People are always thinking about the next downturn,” Bailey said. “We’re somewhat overdue for the next downturn.”

Bailey said factors like tax cuts are helping businesses invest more into capital, so the economy is growing, leading to higher consumer confidence.

But the trade war could slow that.

“I think the impact may be greater than a lot of other individuals are sort of estimating right now,” Bailey said.

Bailey adds inflation is growing and when you combine that with increased tariffs, it makes it harder on consumers.

But as stocks and consumer confidence continue to climb, a bubble forms.

“We’re probably starting to get due for a small correction, hopefully, a small correction like we saw last February,” Bailey said. “That’s not a bad thing. I’d rather see a small correction than a precipitous fall.”

President Trump is likely to announce more tariffs on Monday, and Bailey estimates it could take up to six months at least to feel the effects of those, which would put noticing the effect into early 2019.