(IHT)Unemployment may still be rising and the economy may be nowhere near a bottom, but Wall Street's manic mood bubbled higher on Wednesday.
Cheered by reports showing a surprising increase in home-building last month, stock markets climbed in the last half-hour of trading, with major market indexes rising to their highest levels since late February.
Construction companies like KB Home, the Centex Corporation and Toll Brothers paced gains in the broader financial markets after the government reported that new-home construction in February rose 22 percent from January to a seasonally adjusted annual pace of 583,000. It was the biggest percentage gain since January 1990 and the first increase since April.
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Last week rally was fueled by financials, this week is the US housing providing the battery for the market to charge. Will pundits be right - financial and housing are stabilizing? If indeed it is, this is a great news because housing and financial must stablize in order for the market to march higher. Dow target of breaking 7,500 will attract momentum players. Sit tight and relax - exciting times ahead of us. Back to my original question: is financial and housing stabilizing? This is a very important question I must ponder during the weekend.
1 comment:
ETF is a good alternative during this crisis to divest into other asset class, good luck in your investment
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