With the market opening up on a tear today the bulls are out in force.
Both the DJIA and the S&P 500 recorded intraday highs with the Dow up 100 points at 16,695 and the S&P index trading at 1892, not far from that magical 1900 level many bulls have predicted. Over on the Nasdaq smaller company shares also inhaled a breath of that higher, rarefied air adding 57 points mid-day.
European stocks lent a helping hand to the US opening, apparently discounting the latest negative news from the Ukraine. Stocks in the UK, France and Germany all closed up with the Stoxx index hitting a six-year high closing at its highest level since 2008.
Bulls are citing improved economic fundamentals, low inflation and lack of any signs on the horizon of those dreaded bubbles investors fear so much. Still another point the bulls lean on is over-concern about how high and how fast interest rates will go up.
Now we're not suggesting their predictions for more gains are incorrect. We've are still net long. Driving through the south some years ago we ventured upon a popular home grown restaurant with a big home grown sign out front that said: Great Food, Great Service, Great Prices. Pick Any Two.
The corollary of that in market parlance is you can pick the timing or you can pick the direction. But you'll seldom get both correct.
http://www.cnbc.com/id/101663665
http://www.bloomberg.com/news/2014-05-12/gundlach-s-no-normal-means-treasury-yields-defy-market-selloff.html
No comments:
Post a Comment