The Dow Jones industrial average passed another milestone today. Here's a little explainer as to why stocks have done so well in recent years — and why it doesn't affect the wallets of most Americans.
The stock market ended the first three quarters of 2016 on a positive note. Rising stock prices typically help an incumbent party in a presidential election year. But October can be a wild month.
Stock markets are often seen as a predictor of what's ahead for the economy. But some say this year's falling markets are crying wolf. "I think financial markets have overreacted," says one economist.
While experts focus on trying to explain the stock market's jumps and dives, we spend a little time cutting through the bull to get some different answers.
Investor Jack Bogle is leading a populist revolution on Wall Street. He wants everyday Americans to make a lot more money in the stock market and give less of their returns away to financial firms.
Selling after a market plunge, financial experts say, just locks in the loss and prevents investors from participating in the rebound. But human psychology can make that advice excruciating to follow.
Unlike 2008, the current turmoil didn't originate in the U.S., economist Austan Goolsbee notes. And this time, the economy is growing, banks aren't in danger and there's no credit crunch, he says.