Re: SPY Climbing
Hi, Tommy86!
True. The Fed rate near zero exists to stimulate markets, which is what has been going on in quite a sustain way over the past several months.
However, I believe that fundamental news coming from Europe (Fiscal issues in UK, Greece, Italy, Spain, Portugal), as well as the Middle East (Insolvency of Dubai), and the US (timid recovery that should take longer than expected), and Asia (exporting economies that have not received the demand of European and American countries) are all likely to weigh down in this close economic system.
There are certain economic realities that cannot be reshaped by Fed policies alone, and this is likely what we are about to experience: no matter how cheap we make lending to businesses, the consumer appetite is waning and impacting on employment.
This week's data will release a lot of these numbers regarding production, consumption and empoyment levels.
If the tone remains modest or negative, we are likely to see some break-down in this and other inter-related markets, IMHO.
- Dalcindo
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