The stock market keeps jumping up sometimes giving false hope to investors of the golden days gone by when everything moved only one way-UP. Now is the time to be skeptical and cautious. It is also a time for picking up some good growth and value stocks for long term buys.
Here is an old post of mine from April 1st , 2008 when the stock markets and spcifially Wall Street had jumped up on all fools day.
Stock Market Surges
Is this the real thing or is the Wall Street playing an all fools day joke on everyone? During the dot com bust the stock market jumped 3 to 4 percent many times rekindling hopes only to shatter them once again. The tech stocks gained as much as 7 to 8 percent on those days. Is history repeating itself? Have the wise ones learnt their lessons from the past? Is the worst over? I don’t think so.
People are clinging to straws. Stock traders are buying because the news is not as bad as they thought it would be! This means less bad news is good news! Will the stock markets world over move up just on hope? Who can say, only time will tell. Stock markets seem to have a mind of their own and a knack for proving the experts wrong. ( and catching you and me on the wrong foot)
Banks are trying to clean up their books in a hurry and I sure hope they are able to. I do not think we are out of the woods as yet.
Why the Spurt?
* Investors rushed back into stocks, optimistic that the worst of the credit crisis has passed and that the economy is faring better than expected.
* Renewed enthusiasm that the credit crisis might be waning was also felt in the Treasury market, where government securities fell as investors withdrew money to take bets on stocks.
* In addition to hopes about the financial sector, Wall Street was relieved to see the feeble dollar regain some strength against the Euro.
* The stock rally was boosted by the announcements from UBS and Lehman Brothers that they are boosting capital by issuing new stock.
* The Institute for Supply Management said its index of national factory activity edged up in March, although it remained below the level that separates growth from contraction still, it beat expectations, which brought back the investors.
Encouraging economic data and strength in financial shares fueled Tuesday’s rally, with major indexes each up over 3%.The Dow Jones industrial average .DJI gained 391.47 points, or 3.19 percent, to end at 12,654.36. The Standard & Poor’s 500 Index .SPX rose 47.48 points, or 3.59 percent, to 1,370.18. The NASDAQ Composite Index .IXIC jumped 83.65 points, or 3.67 percent, to 2,362.75.
Other stock markets on all fools day :
Tokyo’s Nikkei closed up 1.04 percent. There were gains in Europe too, with London’s FTSE rising 2.64 percent, Frankfurt’s DAX gaining 2.84 percent and Paris’ CAC 40 advancing 3.38 percent.
My cautious suggestion to stock market investors will be to wait and watch. The stock markets are not going to run up in a hurry and your favorite stocks will give you many opportunities for stock picking. good luck from stockinvest.in team
Here is an old post of mine from April 1st , 2008 when the stock markets and spcifially Wall Street had jumped up on all fools day.
Stock Market Surges
Is this the real thing or is the Wall Street playing an all fools day joke on everyone? During the dot com bust the stock market jumped 3 to 4 percent many times rekindling hopes only to shatter them once again. The tech stocks gained as much as 7 to 8 percent on those days. Is history repeating itself? Have the wise ones learnt their lessons from the past? Is the worst over? I don’t think so.
People are clinging to straws. Stock traders are buying because the news is not as bad as they thought it would be! This means less bad news is good news! Will the stock markets world over move up just on hope? Who can say, only time will tell. Stock markets seem to have a mind of their own and a knack for proving the experts wrong. ( and catching you and me on the wrong foot)
Banks are trying to clean up their books in a hurry and I sure hope they are able to. I do not think we are out of the woods as yet.
Why the Spurt?
* Investors rushed back into stocks, optimistic that the worst of the credit crisis has passed and that the economy is faring better than expected.
* Renewed enthusiasm that the credit crisis might be waning was also felt in the Treasury market, where government securities fell as investors withdrew money to take bets on stocks.
* In addition to hopes about the financial sector, Wall Street was relieved to see the feeble dollar regain some strength against the Euro.
* The stock rally was boosted by the announcements from UBS and Lehman Brothers that they are boosting capital by issuing new stock.
* The Institute for Supply Management said its index of national factory activity edged up in March, although it remained below the level that separates growth from contraction still, it beat expectations, which brought back the investors.
Encouraging economic data and strength in financial shares fueled Tuesday’s rally, with major indexes each up over 3%.The Dow Jones industrial average .DJI gained 391.47 points, or 3.19 percent, to end at 12,654.36. The Standard & Poor’s 500 Index .SPX rose 47.48 points, or 3.59 percent, to 1,370.18. The NASDAQ Composite Index .IXIC jumped 83.65 points, or 3.67 percent, to 2,362.75.
Other stock markets on all fools day :
Tokyo’s Nikkei closed up 1.04 percent. There were gains in Europe too, with London’s FTSE rising 2.64 percent, Frankfurt’s DAX gaining 2.84 percent and Paris’ CAC 40 advancing 3.38 percent.
My cautious suggestion to stock market investors will be to wait and watch. The stock markets are not going to run up in a hurry and your favorite stocks will give you many opportunities for stock picking. good luck from stockinvest.in team
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