Daily Investment Interpretations
August 21, 2009
The markets galloped to new highs today. The
NASDAQ Composite advanced 31.68
to close at 2.020.90,
the Dow closed up 155.91
settle at 9,505.96
and the S&P 500 added 18.76
to end the week at 1,026.13.
Oil closed at $72.35
a barrel, while gold fell $13
to $955. The VIX
declined ever so slightly to 25.01.
There was exceptionally good news today. Existing-home sales have now risen for four months in a row, with last month's sales at a two-year high. Also, Fed Chairman Bernanke said today that the Fed and other central banks saved the world from "devastation". Meanwhile, unemployment levels continue to rise; Paul Krugman points out that the last several recessions have had "jobless" recoveries in which it can take two years before employment rates pick up substantially: Permanent Link to The answer is yes.
Of course, the question is always, "What happens next?", but in this news-driven market environment, perhaps we're at the mercy of what the news will bring. Longer-term, though, there now seems to me to be general agreement among leading economists that a recovery is on its way.