Tag Archives: Rally

Market Confusion

Market Confusion

Some analysts have argued that the recent market rally does not reflect the true value of the stock prices and that there is very little correlation between the general health of the economy and the stock market. The former Fed chairman, Alan Greenspan, appearing on CNBC’s Squawk Box, stated that there is no “irrational exuberance” and if anything, the stocks are undervalued. It’s important to point out that Greenspan failed to foresee the last bubble. Writing for the Daily Beast, Daniel Gross argued that when celebrities start showing interest in stocks, it is time to leave the market. Gross was referring to Mila Kunis’ appearance on CNBC, which according to the author is a sign that “stupid money is in play”. He then compared the trend to Joseph Kennedy’s experiences as a master speculator. Kennedy realised that when shoeshine boys started dispensing stock tips in the 20’s, it was time to get out of the bull market.

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And The Rally Continues

And The Rally Continues

As we predicted on Monday morning, the stock rally continued, with Dow closing at a record high and S&P 500 finishing just one per cent from its all-time high. On Monday night the Dow ended at 14,447.29, spearheaded by Boeing, the American multinational aerospace and defence corporation and Merck, the global healthcare leader. The S&P 500 rose by 5.04 points to reach 1,556.22 by closing time. The index which tracks the top 500 publicly traded businesses in the U.S was almost 0.5 per cent from its all-time high of 1,565.15, which it reached in 2007. Moreover, Nasdaq increased by 8.51 points to hit 3,252.87 by closing of trading on Monday.

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