Like I've said before, the stock market often acts just like a beautiful, but fickle woman. Sometimes it takes a little effort, but if you love her and treat her right, you'll get back more than you give. Monkee around with her, and she'll turn on a dime.
In that respect, I've been trying to get her to realize the beauty I saw in her when no one loved her a few months back, and now her face is starting to glow again. All it took was the ability to see what was underneath her tarnished reputation, realizing her potential, and faithfully believing in her.
But, don't just take my word for it. Other investors are starting to appreciate her beauty too.
Although the S&P 500 barely closed out this week higher, it does mark the fourth straight week of gains for the index, returning approximately 4.6% to investors for the year so far.
It also marks what I believe to be the beginnings of a significant return in economic and stock market confidence. Short-term stock market movements are all about perception, and market conditions are now reflecting the perception that perhaps things aren't as ugly as previously thought.
Read this excerpt from Alpha Now, and it's easy to see why stocks are the place to be. -
ReplyDelete"The US economic recovery sent earnings per share reported by S&P 500 companies soaring 18% in the third quarter of 2011 over year-earlier levels, with earnings levels setting a fresh high. Along with high net income went higher aggregate free cash flow, leaving companies with excess cash."