Daily Investment Interpretations
August 4, 2010
markets rose more today than they fell yesterday. The NASDAQ Composite
to finish at 2,303.57. The Dow skipped up 44.05
at 10,680.43, and the S&P 500
to end at 1,127.24, putting it nicely above its 1,120 resistance level. Oil
aclosed at $82.41 a barrel, while Gold ratcheted up to
$1,198 The VIX rose 0.42 to 22.21.
Could the wild card in the current financial imbroglio be the Fed? The moves that the Fed could make are allegedly expensive and unproven. The Fed wouldn't seem to me to have a politician's incentives for political spin. Ben Bernanke has recently been confirmed for another term as Fed Chairman. At the same time, Chairman Bernanke has recently gone on record predicting a 3%-to-3.5% growth in U. S. GDP for 2010 and a 4.0%-to-4.5% growth in U. S. GDP in 2011.Is he right? It seems impressive to me that the markets, which look 6 to 9 months ahead, haven't plunged, and in fact, have broken out of their recent trading ranges and are headed back up. It's also the case that there's a lot of bearish sentiment about the outlook for the future.
Stock market futures are down slightly tonight.