The S&P500 closed over 1800 on Friday night ( 0.5 per cent, with the Dow up 0.3 per cent and the Nasdaq up 0.6 per cent) for the first time ever – a new record!
There wasn’t really any data or news flow to drive the market higher as such. Unless you count the Kansas City manufacturing index which sky rocketed to 7 from 6. This is just the feel good factor. Investors feel good because the economic recovery is strong – one of the strongest on record when accurate comparisons are made – yet policy makers and their lackeys are at pains to tell you how bad it is – weak and anaemic. Indeed one of the weakest on record. This is to the point where people like Larry Summers feel the need to revise history and redefine past periods of prosperity as weak growth periods! Seems these guys will do anything to keep the printing presses going. The only way is up!