For the second consecutive day, the Dow Jones industrial average set a record at the closing bell ending Wednesday at 14,296.24.

After surpassing the previous record on Tuesday, set in October 2007, the new all-time high has local financial advisors telling investors to maintain the cautious practices that helped steer clients through the volatile market that followed the last record high and ushered in the last recession.

What does this new record mean?

Joe Delsignore, a financial adviser for Edward Jones in Shiloh, said investors are more confident and that the economy is gradually getting better:

"It's not 100 percent, but I think we are heading in the right direction. We are a little more confident and the economy is doing very well, unemployment is improving and housing is improving. We're grinding through this. It is a gradual process here. Things are a little bit better, not to say we are home free"

Fellow Edward Jones financial adviser Jason Rehg said that investors who stuck with the market through its recent vitality, you have been rewarded with returns on your investments:

"I think that it's great news considering all of the road bumps that we came across over the past few years," said Rehg, whose office is in Collinsville. "Most investors and a majority of my clients stuck with it. They remained invested in long-term commitment and most were rewarded with made quite a bit of money in the last few years."

How should investors react to this?

Financial consultant Mark Burgdorf, of Burgdorf & Associates Financial Planners Inc. in Fairview Heights, said investors should still invest cautiously as they always have, even in this strong market. He said historically low interest and government investment in the economy have helped in the market's rebound.

"Enjoy it while it's here," Burgdorf said. "But there is definitely some risk in the market from a variety of issues like the upturn in the government pumping in a whole lot of money into the market and some folks are coming late to the dance."

Rehg said that now is the time when people should meet with their financial adviser to make sure their portfolios are properly allocated.

"Given the goals and tolerance, for risk this may be time to make an adjustment to their portfolio if they have not been in to see their financial adviser, recently," he said.

What has happened to the market after this happened in the past?

Rehg said that typically the stock market witnesses a correction after strong gains. Usually the market will see a pullback of 10 percent each year and three 5 percent drops annually.

"So vitality is always possible," he said. "That just comes with the market. It will be interesting to see where things go moving forward."

Said Delsignore: "I think we're due to have a correction. That's nothing to be alarmed about. It's a normal part of the investment process."

Contact reporter Will Buss at wbuss@bnd.com or 618-239-2526.