As the markets continue to rally, this past week saw the Dow Jones Industrial Average break 20,000 for the first time. In response, some of the brokerages in the e-Monitor coverage group released insights discussing the event. Fidelity stands out as the only firm to highlight the record high with an article published to its public site homepage, but a few other firms, such as Edward Jones, TD Ameritrade and Wells Fargo, released proprietary one-page insights.
The message from each firm is similar: while this landmark signals an increase in positive investor sentiment due to pro-growth policies, this is more of a psychological milestone. The firms do not encourage investors to alter their portfolios drastically. As the current political climate makes it an interesting time for the U.S. economy, providing investors with actionable information and highlighting milestone market events is of paramount importance for firms. TD Ameritrade, for example, admirably provides clients with specific sector recommendations, and Fidelity suggests that this is a good time to do a personal portfolio evaluation.
While a rise of 1,000 points means less than it did 20 years ago and analysts agree that this milestone will not significantly affect the overall markets, the Dow has still overcome a significant threshold. Investors are interested in how this market change, in addition to the current market rally, will affect their portfolios. Firms, especially discount brokerages, should continue to focus on highlighting market events as clients rely on the brokerages’ educational tools and resources to make informed decisions.