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Millions See No Benefit From Soaring Stock Prices

bull market investment For example, a pension recipient may be less likely to face benefit cuts thanks to strong returns by a pension fund. And proponents of the so-called "wealth effect" say that a soaring stock market encourages wealthy consumers to spend more, which stimulates the economy. But overall, the effects of the bull market have likely been minimal for non-investors. "It just doesn't have an impact for the vast majority of people," said Heidi Shierholz, an economist at the Economic Policy Institute. Related: Many middle-class Americans plan to work until they die Some consumers may be staying out of stocks because they fear another market crash. But in many cases, low- and middle-income Americans simply don't have any extra money how to join the elevation group to invest, she said.

Stock Market’s Dependence on Easy Money Weakening?

Stock Market’s Dependence on Easy Money Weakening? image Why a Storm May Be Brewing in the Stock Market "I don't think we should be too concerned," about the early slump, says David Kelly, their website chief global strategist at JPMorgan funds. "There's a certain amount of rebalancing going on, which is completely appropriate after the big year that we've seen." Five days may not make a year, but by some measures, the weak start is a bad omen for the market. The Stock Trader's Almanac says that if the S&P 500 rises during the first five days, the index has an 85 percent chance of ending the year higher, based on 40 years of data. The last time the index fell over that stretch was in 2008 when the S&P 500 slipped 5.3 percent as the stock market reeled in the aftermath of the financial crisis. The index ended the year 38.5 percent lower as the Great Recession took hold.

Stock Market's Slow Start May Bode Ill for 2014

Yellen will receive her first piece of key economic data this Friday when the non-farm jobs report for December is due. A decline in the unemployment rate to below seven percent and the creation of 200,000-plus jobs will clearly drive the Fed to seriously continue to taper. What happens to the stock market this year will be dictated by the rate of jobs growth and the number of unemployed. We also need to see corporate America deliver stronger revenue growth to drive earnings. In the past few years, aggressive cost cuts have driven earnings, which is not sustainable.

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