Experts wary after money markets show gains

by: Scott Wickersham Updated:

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After the Dow Jones and NASDAQ hit record highs Monday, some investors are wondering how high the markets will go and if there could be a major bubble about to burst.

Financial planner Kelly Graves has been taking calls from clients lately, happy at the market boom and wary, too.
"We haven't had a serious correction since August 2011," said Graves.

A correction, or drop in market value, can happen when investors start selling those high-priced stocks for a profit.

But Graves doesn't foresee anything like the collapse in 2008.

He'd only advise those very close to retirement to consider cashing out now.

"They don't have a chance after the next market correction to make it back. So it might be time for them to move some chips off the table," Graves said.

Economist John Connaughton says a 10-15 percent market correction could be coming, dropping the Dow back down as far as 14,000.

But he said companies are doing well, and the markets like Federal Reserve chief nominee Janet Yellon because she plans to continue federal support of the markets.

He said continued high growth numbers in the economy would be a game-changer.

"If you start to see indications the fourth-quarter growth will be 2.8 or 3 percent, all bets are off on any type of correction," Connaughton said.

And Graves said in the long term, the markets are still the best return for your investment.

"Bonds are terrible. CDs are bad. What else are you going to do with your money?" Graves said.

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