I like it, I like it a lot
Continuing falling oil prices and an uplifting economic report sent USequities to 3 year highs on Wednesday. We argued earlier this year
that the Dow would cross 10,700 and turns out we're right. We're still
very bullish on stocks up for the remainder of the year. For the
market to reach levels unseen since the 9/11 attacks indicates
investor confidence has returned. The fact that Bush swept Kerry under
the rug and better than average corporate earnings is adding fuel to
the fire suddenly heating up the market.
Analysts are looking at this as the traditional "Santa Claus" rally,
which takes place in the final week of the year and the first couple
days of the new year. When the market reacts to good news in a good
way; its good, obviously. Let's wait and see how investors react when
a bit of bad news hits the tape... Todays action saw Pfizer picking up
some the market cap is lost last week when Celebrex was questioned for
increased heart attacks amomg its users. Boeing--which I own--also
gained ground on news that Japan Airlines planned to buy 30 7E7
Dreamliners from the aerospace leviathan. And mortgage king Fannie Mae
gave the boot to its CEO Franklin Raines and CFO Timothy Howard in the
wake of accounting irregularities that will force a ground shaking
earnings restatement. Not good, boys--naughy, naughty--no gifts for
you this year.
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