Analyst: History indicates positive stock market outlook

SCOTTSDALE, Ariz. — When the stock market closes better than 20 percent in one year, it generally offers the promise of a following year in the black, an analyst said.

The Dow reached 16,000 for the first time in history Monday and Jeff Junior with Trajan Wealth said now is the time to rework your financial portfolios. The market will eventually correct itself and those with a 401(k) may want to take some money out of stocks and invest in bonds or something slightly safer.

“Because when the market does correct they won’t have so much exposure and they won’t lose as much,” he explained.

But Junior doesn’t expect a stock market correction and, in fact, sees it continuing to go up.

“We haven’t had a major correction in the past two years which is a little scary,” he said. “We want corrections. When we continue to build and build then something is bound to correct. Back in 2007 and 2008 everybody became greedy before the market corrected and they got hurt.”

Junior said the government is pumping $85 billion into the economy and interest rates could be low for the next couple of years and that’s why he sees the market continuing to go up.