So much for the soft patch
What a nice surprise it was to check the market this afternoon and find the Dow Jones industrial average is up 183 points. Investors seem to have decided that all their hand-wringing over the prospect of an economic slowdown and weaker corporate profits was overdone and are buying stocks with abandon today.
What triggered the bonanza? Strong earnings from the likes of Intel, eBay, Nokia and SAP. A sharp drop in first-time jobless claims reported this morning shows the labor market may be rebounding after some weakness in the last two months. Plus we had some exciting merger news -- the New York Stock Exchange merging with Archipelago.
Most important: Stocks have gotten a lot cheaper in the last week. As we approached the magical 10,000 level on the Dow a lot more buyers decided to get back into the market. It may not be that they believe the market will go much higher in the months to come -- just that they didn't think it would go any lower. Sometimes that's all it takes.
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If you choose God you gain much even if after you die you find out 'it was all a lie'. if you live without God you risk a lot because if all those 'religious fanatics'are right, eternity becomes a long time to regret the decision. That is Food for Thought!
Posted by: mels at May 18, 2005 05:56 PM