Reporting Anthony Silva
BOSTON (CBS) – Wall Street finally erased the effects of the economic crisis Tuesday, as the Dow Jones 30 Industrials finished at a record high for the first time since 2007.
The Dow has more than doubled since falling to a low of 6547 in March of 2009.
WBZ NewsRadio 1030′s Anthony Silva reports
Morgan Stanley Vice President Christine Armstrong says despite what she calls “deficit hawks” warning about inflation, high interest rates and out-of-control federal spending, something else has happened.
“Our economic numbers are improving,” she says.
“When the market goes up this much, this quickly, it tends to settle back a little bit,” Armstrong continues. “I would not be surprised to see (the Dow) pull back over the coming weeks and months, but we’re not looking at a bear market right now, we’re not looking at a crash.”
Armstrong also says the average person does exactly the wrong thing with their investments.
“We buy when things are high, we sell when things are low. When Wall Street goes on sale, everybody leaves the store. We should be doing just the opposite.”