Dec 25 2014
Tom McClellan links the declines of stocks, gold, and oil. He is predicting a bounce in oil and then another failure to rally.
The best explanation of the never ending stock rally is simply this. The stock market has become the national commercial bank for most individuals. Unable to earn anything interest wise, money has piled into the stock market. And the never ending FED QE stream finds its way there as well. As several articles noted yesterday, fund mangers fear missing out and not recording gains so they finally pushed the Dow over 18,000. It is really just as simple as that. All this about the economy is just rationalization. Yes lower energy prices are the tax cut Congress won't provide and that will stimulate spending, auto and pick up sales are up as well as retail stocks.
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