Skyrocketing markets bode well for savings

Aug. 01--Christine Armstrong, a senior portfolio management director with Morgan Stanley, tells Boston Herald Radio's "Morning Meeting" that markets around the world are doing exceptionally well right now -- good news for those looking at retirement savings

Q: What have been some of the highlights over the past few days?

A: This market not only closing at an all-time high on Friday, but we opened again, at an all-time high in stock market history. So, we're right in the middle of earning season ... we've heard from 289 out of the S&P 500. And that earnings growth is up about 10 1/2 percent, and that's really good. We have been seeing this momentum start almost a year ago and increase, but the really good part about it is that it's all around the world. So for those of us in 401(k)s and IRAs and places to stick a little bit of money, you can really do well and set yourself up long term. We've had great economic numbers. The only thing you may not want to hear is that oil prices, we're paying a little bit more at the pump. That's good for our economy. Oil is getting close to $50 a barrel right now. Home sales today, up really strong, more than expected. The problem with home sales, there aren't enough entry-level homes around the nation, so a lot of first-time homeowners are getting shut out right now. All in all, really good news. Just keep putting those dollars away, you're going to do well over time.

Q: Will there be a slump in spending as summer vacation winds down?

A: Think of back-to-school buying, you know, clothes for the new year, school supplies for the new year. Think about that. We get into car season towards the end of the year, so there's a revolving or cyclical kind of move.

Q: How do you explain these large quarterly performance numbers?

A: This has been built in, a long time ago. In 2009 when we almost fell off the financial cliff, the feds went into to this trillions of dollars of helping support the banking system, and really making interest rates low, so the people could refinance, they could borrow money for their businesses, the economy could get back on its feet. And here we are with the fruits of those labors happening, but now we're at the end of an economic cycle. So these good times aren't going to go on forever. ... We're due for a little slump, but I think we're going to keep on going for a few years. This is a really good environment for the market.

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