Federal Reserve: 1913-2009 (Photo credit: r0b0r0b)
Stocks Continue to Move Higher
Despite nervousness that the Federal Reserve may stop buying treasurers and that China may take steps to cool its housing sector, the stock market moved higher today continuing the trend that started well before the election of 2012. The recent run-up happened during earning season as profits should some strength and the end of the season led to a short period of pause. But that may now be over.
Stocks moved lower at the beginning of the session today, the first day after the Sequester was allowed to cause automatic cuts in government spending in the US. But any negative news is short lived as other factors take hold and cause stocks to increase in value.
The US housing sector is rebounding which is leading to economic optimism in addition to growth in the employment numbers nationwide. And the Federal Reserve doesn’t have a plan to cut their aggressive stimulus actions which leads investors out of bonds (which only fall under the Fed pressure) and into stocks that act positively to inflation. There is some money also still in banking accounts and cash that is not making any returns at all that eventually finds its way into the equity markets.
Mid Day Market Update 3/4/2013