Market Euphoria…

3 08 2009

Mike Carignan InternetBy Mike Carignan, CRPC®

Well it’s the start of a new month and there is a lot of sunshine out there right now.  I mean the college and pro football seasons are about to begin and there seems to be a sense of anticipation and euphoria.  Even if last year their team didn’t do well or had some player scandals, right now everyone’s favorite team is in first place.

If you take a look at the last few weeks in the equity markets you’re going to see much the same attitude.  Much of the fundamental problems that led to the market downturn and the credit crash have not been fixed. Earnings are a little better but not great.  Unemployment is still rising, but slower than before.  Yet there is this feeling of euphoria in the markets that continues to sustain this three week rally we’ve seen.  The S&P 500 alone has increased from 879 to 1,001 (+13.9%) since July 10th!

Is it here to stay or are there some more storm clouds ahead that will dampen the enthusiasm?  Time will tell, but the overall feelings of despair and capitulation seem to be mostly gone and money appears to be following an optimistic view of the future again.  For now, the markets are working for investors again — rebuilding some of the confidence that was lost over the last year.  There is still potential for some summer storms, but it appears the worst of the monsoon may be over and most investors feel that it’s time to start the rebuilding process again. 

 

This blog is for informational purposes only.  This is neither an offer to purchase nor sell any securities.  All investing involves the potential of loss – including invested principal.  Indices quoted are general barometers of security price movement.  You cannot invest directly in an index.  All information is obtained from sources deemed reliable but not guaranteed.  Past performance is not a guarantee of future performance.  No tax or legal advice is given nor intended.

Investment advisory services provided by Paragon Wealth Strategies, LLC, a registered investment advisor. 

10245 Centurion Pkwy. N. Ste 105, Jacksonville FL 32256   (904) 861-0093

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