In February 1998, the key US index the S&P 500 hit 1,000, on the 25th August the index moved through 2,000 for the first time. After falling back later in the trading session today it sits at 2,001, quite a rise for 2014. The S&P 500 closed at 1,848 at the end of last year which means that it is up 8% year to date, and that followed a 30% rise from 1,426 in 2012. Pretty impressive that things have kept moving up so strongly without any major corrections for so long.
Dovish comments my Mario Draghi at the European Central bank and some decent economic news from America including consumer confidence numbers coming at levels not seen since 2007 as well as durable goods orders up 22.6% in July driven by aircraft orders have all helped sentiment. With benign inflation, low interest rates, easy monetary policy many are defending current valuations. M&A activity is also helping with Burger King’s deal for Canadian company Tim Horton. Geo-politics seem to be the only potential derailer right now with the technical strength of the rally in US stocks very much intact.
The bulls are in control! The rally is in full swing after the early August falls and there seems to be no stopping the rises. Many are fearful about being left behind so the money keeps pouring in. The bears are waiting for that big correction but it seems a long time coming. I don’t see many bargains right now, but waiting for that big fall could take a awful lot of patience in this current environment. The attitude is “you’ve got to be in it to win it”.
Contrarian Investor UK
IMPORTANT: The posts I make are in no way meant as investment suggestions or recommendations to any visitors to the site. They are simply my views, personal reflections and analysis on the markets. Anyone who wishes to spread bet or buy stocks should rely on their own due diligence and common sense before placing any spread trade.
by contrarianuk
S&P 500 consolidates over 2000
Aug 26, 2014 at 2:36 pm in Market Commentary by contrarianuk
In February 1998, the key US index the S&P 500 hit 1,000, on the 25th August the index moved through 2,000 for the first time. After falling back later in the trading session today it sits at 2,001, quite a rise for 2014. The S&P 500 closed at 1,848 at the end of last year which means that it is up 8% year to date, and that followed a 30% rise from 1,426 in 2012. Pretty impressive that things have kept moving up so strongly without any major corrections for so long.
Dovish comments my Mario Draghi at the European Central bank and some decent economic news from America including consumer confidence numbers coming at levels not seen since 2007 as well as durable goods orders up 22.6% in July driven by aircraft orders have all helped sentiment. With benign inflation, low interest rates, easy monetary policy many are defending current valuations. M&A activity is also helping with Burger King’s deal for Canadian company Tim Horton. Geo-politics seem to be the only potential derailer right now with the technical strength of the rally in US stocks very much intact.
The bulls are in control! The rally is in full swing after the early August falls and there seems to be no stopping the rises. Many are fearful about being left behind so the money keeps pouring in. The bears are waiting for that big correction but it seems a long time coming. I don’t see many bargains right now, but waiting for that big fall could take a awful lot of patience in this current environment. The attitude is “you’ve got to be in it to win it”.
Contrarian Investor UK
IMPORTANT: The posts I make are in no way meant as investment suggestions or recommendations to any visitors to the site. They are simply my views, personal reflections and analysis on the markets. Anyone who wishes to spread bet or buy stocks should rely on their own due diligence and common sense before placing any spread trade.