San Diegans watching stock market closely

Posted at 4:04 PM, Jan 05, 2018
and last updated 2018-01-05 19:51:20-05

San Diegans are continuing to closely watch the Dow Jones Industrial Average, which closed at a record of nearly 25,300 Friday. 

2017 was one of its best years in recent history.

The index rose about 5,000 points over 2017 - increasing the value of 401(k) accounts, and other investments all over San Diego.

But many are now asking - how long can this rally go?

"I hope that the bubble doesn't burst and it continues to go up," said Steve Hillier, who was visiting Del Mar Friday. "Sometimes I think it could be too good to be true.  

Stephen Gelina, a vice president at Fidelity Investments, said he's being asked quite a bit the market's future these days.

He said thinking long-term can help temper any fears of a correction. 

"Obviously these short-term performances that we're seeing in the market, these different events, we want to take those into account, but we don't want to make broad based decisions with an allocation or a strategy based on that information," he said. 

Lynn Reaser, chief economist at Point Loma Nazarene University, said she expects the stock market to have a solid 2018, even with perhaps a minor correction in store.
"The stock market is strong and reflects fundamentals rather than a bubble-driven mania," she said. "The economy is solid, with rising employment, falling joblessness, strong consumer spending, and rising business investment."

Hillier himself is taking a wider view - after all, he says he's still at least 20 years from retirement.

Right now, he sends 10 percent of his salary into his retirement account - and his employer tacks on another 6 percent. 

It's money he hopes continues to grow.

The dow-jones industrial average, a composite of 30 major companies like apple, coke, and the home depot, had its best year since 2013, growing 25 percent.

The s&p 500, a composite of 500 major companies, grew 20 percent.