The stock market has been trading close to record highs thanks to low gas prices, as well as continued job growth in the United States, a stock market observer said Monday.
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"We continue to chug along with over 200,000 jobs per month. Even without big wage increases, that still is going to help out aggregate personal income," David Rosenberg, a chief economist and strategist at Gluskin Sheff, said on "Squawk on the Street." "I think the outlook for the consumer, especially the beaten down, low-end group, is actually going to be quite constructive over the course of the next few months."
After all, with more people working, more money is being put back into the economy. Though some are concerned about a lack of wage growth, Rosenberg said it's kind of a "double-edged sword" because on the one hand lower wages keeps prices down, but also means people have less money to put back into the economy. He thinks wages will climb in the next year, though.
Reduced energy prices are a "godsend" for companies, too, because it now costs less to operate, making their business more profitable, Rosenberg said. Lower gas prices mean people have more money to spend on other things, too, like clothing or dining out. All of that bodes well for companies, often helping push their stocks higher, too.
It seems the stock market has priced in gains from its Oct. 15 bottom, though, especially considering valuations, he said.