(Source: WSJonline.com)
On Monday the Dow Jones Industrial Average stock index hit not only its highest number for 2009 but also over the last year, with a gain of 203.52 points (2.03%) to close at 10,266.94. Its previous 52-week high was 10,157.9. The S&P 500 closed at 1093.08, just under its October 19th high of 1097.91.
With national unemployment at 10.2%, this rally appears to be detached from the economy at large and driven mainly by positive investor sentiment and is probably overvalued by historic price/earnings ratios. Then again, companies running leaner maybe be more profitable per employee these days with productivity through the roof (a direct result of fewer employees and average working hours).
The US dollar continues to sink in value as the price of gold increased slightly. Oil futures continued their slow climb. World markets jumped up as well.
What do you think about the bull market since March of this year? Is it sustainable? Will we have a major pullback? Smoke and mirrors or part of a true recovery?
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Comments: 8
I'm cautiously optimistic, though I will be a lot happier when the employment numbers look better. Glad to see my 401(k) has regained much of its lost ground, though I still have a ways to go.