KPNX 12
As U.S. stock market indexes closed at new highs Wednesday, financial analysts in Arizona expect a ripple effect to hit the real estate and tourism industry.
“The impact for Arizona is two-fold and it comes from what we refer to as the wealth effect,” said Jason Richards, a certified financial analyst for TrustBank located in Arizona. The “wealth effect” means consumers tend to spend more as stock prices rise.
The two industries expected to be impacted the most by the wealth effect are real estate and tourism, Richards said.
