The S&P 500 just set a new record, and the Dow is above 18,000 again and tantalizingly close to a new all-time high. Even the Nasdaq is approaching the 5,000 mark -- a record it hasn't reached since March 2000.
CNNMoney's Fear and Greed Index, a measure of market sentiment that was showing signs of Fear a month ago, is back in Greed territory.
Love is in the air on Wall Street. And on a freaky Friday the 13th no less. But can the rally keep going?
Next month will mark the sixth anniversary of the start of the current bull market. Many people have pointed out that stocks have NEVER gone up for seven years in a row. So history is not on the side of the bulls.
Still, it's hard to bet against stocks. Every time it seems that a new crisis is about to derail the market and lead to a huge pullback, buyers come rushing back.
Related: Apple and Southwest are among the 10 stocks we love
Forget about a 20% drop that would note a bear market. We haven't had a 10% correction since 2011.
The big concerns that spooked investors last month are starting to fade away a bit.
Oil prices have rebounded to back above $50 a barrel.
Fears of Greece leaving the eurozone haven't gone away but many experts are stubbornly clinging to the hope that Greece's many creditors and the new Greek leaders will avoid the worst-case scenario.
Central banks around the world (with the notable exception of the Federal Reserve) are slashing interest rates and/or buying bonds to fight slowing growth and the threat of deflation. This injection of liquidity could keep stocks afloat for the foreseeable future.
The dollar has weakened a little bit lately as a result. So some of the concerns about a stronger greenback hurting earnings for multinational giants like Microsoft (MSFT, Tech30), Johnson & Johnson (JNJ), Caterpillar (CAT) and Procter & Gamble (PG) could turn out to be temporary.
Related: Alibaba and Disney are two of the 10 stocks you love
Strong earnings, particularly from tech companies, have helped boost sentiment as well. Apple (AAPL, Tech30), Facebook (FB, Tech30), Netflix (NFLX, Tech30) and Cisco (CSCO, Tech30) have all reported solid results.
Bond prices have plummeted this month too after surging in January. And that's pushed yields, which move in the opposite direction of bonds, on the 10-Year Treasury back toward 2%.
So for now at least, the bull is raging. Investors are happy to embrace risk again.
But it's important to remember that market volatility is probably here to stay for awhile.
Stocks could turn on a dime if something goes wrong in Greece. Or the Ukraine ceasefire collapses. Or if there are more problems in the Middle East. Or if oil prices suddenly plunge again.
You get the picture. Many of the risks that everyone was freaking about in January haven't magically disappeared. Investors are just choosing not to be as worried about them right now.
Related: We're on the verge of a crisis, bears warn
CNNMoney (New York) February 13, 2015: 10:00 AM ET
Anda sedang membaca artikel tentang
Greed is back! Stocks at all-time highs
Dengan url
http://kasiatbuatsehat.blogspot.com/2015/02/greed-is-back-stocks-at-all-time-highs.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Greed is back! Stocks at all-time highs
namun jangan lupa untuk meletakkan link
Greed is back! Stocks at all-time highs
sebagai sumbernya
0 komentar:
Posting Komentar