A Rally Before The Storm?

A Rally Before The Storm?

The S&P 500 finished lower on Tuesday, bringing the winning streak of gains to an end as investors moved away from technology, but the Dow managed to pull some gains and thus end at yet another record high. The Dow also hit a record high, while the S&P 500 is approaching its own high of 1,565.15, from October 9, 2007. The market’s surge recently has pushed the Dow up 10.3 per cent for the year and boosted the S&P 500 by 8.9 per cent for 2013 until now. Signs of improvement in the economy and the Fed’s quantitative easing policies might indicate a better future, but one economist, Steve Keen, believes that the US stock market is a massive bubble. “Nothing can accelerate forever. At some point the acceleration stops, and when it does the market breaks,” Keen told The Daily Ticker.

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