And the Market Keeps Rolling Along…..
May 19, 2009
Posted by Jody Eisenman | Filed under Uncategorized, auto bailout
Sorry I havn’t posted in a while, but I have been really caught up with work related activities. As I stated earlier, market sentiment has changed 180 degrees since March 9. Whereas previously the market would react negatively to almost any news, the new market seemingly shrugs off almost everything.
The banks need lots more capital to survive? No matter, they keep rising.
Credit defaults soaring? American Express is now over 26, a gain of over 150% from its’ low of $9.71.
The REITS (real estate investment trusts) have massive debts that may not be able to be refinanced? Who cares, the stock prices (SPG, VNO, SLG) have doubled.
The casino industry business is falling off a cliff? Their stocks (see MGM, LVS,BYD) have exploded.
Part of the reason for this is in my opinion is that..
1. Stocks simply fell too far too fast
2. The credit markets have gotten much stronger. This is a very positive sign for the economy as well, as investors continue to climb out of their caves and start to put capital to work.
After a 235 point rise today, the DOW now sits at 8504. This is over a 2000 point move off the lows a little over two months ago. I expect this positive sentiment to continue for the immediate future.
