Markets are booming.
But the economy is struggling to get back on track after three years of growth, leaving investors in the market with little reason to cheer.
“We have a lot of things that need to be fixed,” said Daniel Leffler, head of U.S. equities research at Wells Fargo & Banco Santander in San Francisco.
Markets are up 9% so far this year, the most since 2008, according to data compiled by Bloomberg.
It’s a remarkable turnaround.
That’s especially impressive considering that the economy hasn’t been this strong for five years.
The stock market, for instance, is up nearly 30% over the past year and is up more than 3% since last year.
Investors are betting on a strong return to the economic expansion, which has been in full swing since the end of the Great Recession in 2009.
That boost to the economy could help fuel further consumer spending and boost the U.K. economy, which is already showing signs of improving.
But some market analysts are worried that the slowdown in growth will hurt the stock market in the long term, hurting consumers and businesses that rely on the economy.
“The slowdown will have an impact on the financial markets in the longer run,” said Scott Healy, a portfolio manager at The Vanguard Group in New York.
“It’s not something that people can easily forecast.”
Some investors are concerned about the impact of the Fed’s stimulus package, which includes raising short-term interest rates.
It was supposed to help the economy, but that money isn’t there yet, and inflation is still too low, Mr. Healy said.
The Fed has said it will start raising short interest rates to help spur more economic activity and create jobs, but some market participants are worried it could drive down the value of the U,S.
Some of the most aggressive investors have said the Fed could end up hurting the economy by hiking interest rates and cutting back on stimulus.
In the long run, Mr, Healy thinks that would hurt the market.
“You are going to end up having a weaker U.Y.S., lower growth, lower prices,” he said.
And he thinks that the Fed will eventually have to reduce its stimulus spending, if it is to prevent another recession.
“There’s going to be a point where the economy slows, but the Fed is going to have to cut back on its stimulus and you’re going to see that happen,” he added.
The U.N. forecast a 2% GDP growth rate for 2017.
It expects the U to add 1.2 million jobs and to be in the black in 2017.
The Dow Jones Industrial Average, which tracks the Dow Jones industrial average index, has soared nearly 5% in the past 12 months.
It jumped nearly 4% to 26,922.82 on Thursday.
The Nasdaq Composite Index has gained nearly 6% over that period.
It is up about 4% in 2017 so far.
The S&P 500 Index, which measures the performance of the 500 largest companies, is trading about 2% higher.