Stocks rose for the seventh straight month in August, continuing a dramatic run for Wall Street.
We talked with local financial advisor Howie Pentony about why, despite the resurgence of COVID, the market continues to grow.
“My guess is, that there is so much money around that every time the market goes down a little bit, people buy the dip,” Pentony said. “And our government is continuing to place maybe trillions of dollars into the public hands.”
Pentony says people continue to buy dips just because of how much money is in the market.
“The companies themselves have trillions of dollars. There’s trillions of dollars in banks–not earning anything I might add. And, you have a situation where prices are still reasonable, they’re a little high, but they’re still reasonable,” Pentony said.
Pentony says investors are blocking out other worldwide events and continuing to buy dips avoiding any outside disturbance to the market.
