UNITED STATES—The Dow Jones Industrial Average recently closed at just over 22,000 points, marking a record high for the stock market index. This has led to many wondering whether this trend will continue, and what the implications might be for the global markets.

Here are some of the potential effects and considerations the news may create in the short term future.

Longevity

It is by no means certain that the Dow Jones’ streak will last for any significant amount of time, and such strong rallies are quite often followed by a rapid fall. The main reason for the rally was a rise in the value of Apple’s shares, which closed 4.7% higher after Apple reported good sales of late.

Investors will now be wondering what will follow this news, and it is uncertain as to where the index might close the same time next month. In this sense, there is likely to be a lot of speculation as to how some of the major US stocks will perform in the coming weeks, given that it will be hard for them to top such a result.

Investors

Most investors are seasoned enough to know that market behaviour is unpredictable, and prone to sudden bursts of volatility. Whilst many may have made a healthy profit from the results of the Dow Jones’ rise in value, others will now be looking for the next market opportunities.

Those involved in CFD trading and other forms of trading may well be preparing for a bout of volatility as people sell off their various shares to make the maximum profit before their value begins to fall.

Other Markets

With this in mind, it could be the case that EU and UK markets become more popular amongst investors, as they have not been performing exceptionally well in comparison, and their relative stability may well seem more attractive.

Those trading forex could well look to currency pairings like USD/GBP and USD/EUR, as these are likely to be incredibly active in the coming months.

The Future

The global economy has had a rough ride in the last year, with oil prices continuing to fall, international tensions rising and widespread investor caution as a result. The UK’s looming exit from the EU is also causing much debate and caution in the stock markets, as it could have far reaching economic consequences for the UK and EU countries.

This may perhaps strengthen the Dow Jones further, as US stocks could be seen as a more attractive option when the uncertainty surrounding UK and EU economies is taken into account. That being said, Donald Trump’s volatile character could put a limit on how much investors are willing to invest in the future, especially if there are major economic reforms.

The Dow Jones’ strong performance is a sign that the US economy is performing well, but not necessarily indicative of long term stability and confidence. When the global economy and the current international climate are taken into account, it seems as though this result should be taken with a pinch of salt.