|
|
ZACKS.COM 2/1/12
PROFIT from the PROS
Tactics that Work in Good Markets and Bad
January Was Jumping! How About February?
The +4.4% rise of the S&P 500 this January was the strongest first month showing since January 1997. That speaks volumes after the breakeven year that was 2011. What it doesn't tell us is what to expect in February.
The problem with a rising market is it creates rising expectations to keep it moving higher. It is clear that this earnings season will not provide that impetus. Recent economic data has been good on an absolute level, but not necessarily showing improvement over the past (like Tuesday's sub-par Consumer Confidence and Chicago PMI showings). So that means the onus lies with Europe.
And early Tuesday things did look better in Europe. First, we got confirmation that 25 of 27 nations are agreeing to a tighter fiscal union which was always needed when you have a monetary union. Those same nations are also now pledged to a $500 billion Euro Stability Mechanism rescue fund. Secondly, European banks are talking about doubling their loans from the ECB. It's assumed that money will be used to shore up the banks' balance sheets and to buy more of the regions government issued debt (which should lower rates and lower fears).
Long story short, the movement of US stocks is unfortunately tied to improvements in the European debt situation. Let's all hope they continue to make greater strides in that direction.
|
|
狗仔卡
发表于 2012-2-1 09:10 AM
提升卡
置顶卡
沉默卡
喧嚣卡
变色卡
发表于 2012-2-1 09:37 AM
.. As you know my religion no bet at all...