Stocks React to Good Economy -- Not So Fast, Says Expert - KXNet - Bismarck/Minot/Williston/Dickinson

  This week, the stock market closed at a record high.  The economy is roaring, right?  Actually, no.  Outside North Dakota -- especially on the Coasts -- growth remains sluggish and unemployment is high.

Then why did stocks close so high?  One expert says it's not because the economy is doing particularly well.  It's positive reaction to assurances made to Congress that the market is going to be protected.  And right now, interest rates are so low, investing in stocks is the only way to potentially make money.

"What is happening is the Federal Reserve is pumping another trillion dollars into the economy.  And if you look at timelines when Bernanke would say something, look at the stock market, that's when it starts going up.  And last week, Ben Bernanke, in front of Congress, reiterated to Congress, 'I got your back.'  And so the stock market had to roll higher, went through major resistance, and is now making new all time highs, because, again, its the only game in town," says Eugene Graner, President, Heartland Investor Services.

While the national economic story remains grim, North Dakota continues to enjoy steady growth.  The most recent statistics from the U.S. Bureau of Labor Statistics show North Dakota's unemployment rate at 3.2