POLITICO The short-term investment industry is growing, but the way investors look at the long term isn’t.
That’s not because of a shortage of data, nor a lack of research, but because short- and long-run data is scarce.
“The data doesn’t exist for the long run,” said John V. McQuillan, chief investment officer of Bespoke Investment Group, which manages $2.5 trillion.
“Investors don’t want to pay for short-run information.
They want to buy the long, the medium and the long,” he added.
“We’ve had the data for the last 15 years and the market is getting better.”
The latest figures from Vanguard, an investment research firm, show that the stock market index closed at a record high on Thursday, surpassing the all-time record of 3.8 trillion.
The market has hit another record for the fourth straight day, closing at a 13-month high.
The S&P 500 index, which measures the market capitalization of stocks and bonds, also hit a record Thursday, closing above 3,000.
But the S&s has hit its lowest level since April 2011, according to the index.
For the past two weeks, the S &B has been in the red for the month of December, a streak of bad performances that has put investors on edge.
For more on the stock bubble, watch: Why stocks aren’t falling, they’re just rising, writes Matt Viser in the WSJ.
The recent sell-off has been exacerbated by the Fed’s decision to raise interest rates.
The central bank has increased its key interest rate by nearly a quarter-point to 0.25 percent, which will raise the cost of borrowing by the average consumer, according the Federal Reserve.
But a number of companies have announced they are raising prices.
Wal-Mart said Friday it would raise prices for all of its 4,000 stores by an average of 6.5 percent, including prices for food, furniture and sporting goods.
And Costco said it would increase prices for groceries by 7 percent.
“They are raising their prices because they are going to have to,” said Viser, a partner at Bespoked.
“There’s no other reason to do it.
If they are doing this because of an increase in inflation, they are a very smart company to do that.”
Some analysts say the Fed has taken the wrong step in trying to lower interest rates, and that it’s not hurting the economy.
“What is the Fed doing?
It’s raising interest rates and the Fed is not doing anything to stimulate the economy,” said Peter Diamandis, managing director at BMO Capital Markets.
“This has been a failure by the Federal Open Market Committee.”
The Fed raised rates to 0% in December, the first time it has ever done so.
Investors have cheered the move, but some have questioned whether the move was a good one.
“I’m skeptical of this Fed strategy of raising rates,” said Adam Smith, chief market strategist at Renaissance Technologies.
“It’s a risky move for a number to take, especially if the Fed decides it needs to raise rates to help keep inflation down,” he said.
“But they haven’t done much to help.”
B. stock market closed at an all- time high Thursday, eclipsing the record of $2 trillion.
In January, it hit a new all-timer record of 9.2 trillion, with investors hoping for a rebound.
The index closed in the green for the first day of the year at 1.4 trillion.
But it closed below that mark again on Friday, and is now trading at just 1.02 trillion.
On Friday, the Dow Jones Industrial Average ended up 0.2 percent higher at 25,917, the Nasdaq Composite gained 0.7 percent, and the S. &.
B. index climbed 0.5 percentage points to 7,942.
Shares of companies that sell consumer staples like gasoline and food have also been buoyed by the rally in the stock price of their competitors.
“You’re seeing a lot of consolidation going on, not necessarily on the consumer side,” said David P. McBride, chief economist at Standard &t Black.
“And the consolidation is happening on both sides of the aisle.”
The stock market is also benefiting from a rise in housing prices.
The Dow Jones is up a full 12.4 percent this year, according a Reuters survey of brokers.
It was up 12.5% in the same period last year, when it was hit hard by the economic crisis.
And while the S+P 500 is up 3.2%, the NasDAQ is up 5.5%.
Meanwhile, the average home value has surged from $200,000 to more than $1 million, according Reuters data.
The price of a single-family home is up