Thursday, 12 March 2009

Rally Goes On for the 2nd Day

"Wall St: Dow Jones up 3.46%, S&P up 4.07%" - These are the current titles. Based on a small downgrade for GE and retail spending that fell less than expected, the stock market rally is continuing.
Now, the question is which analysts to believe. As usual, the time will only tell. If Roubini is right, this is just another bear market rally that might even go on for several months. The push comes from government interventions but, ultimately, the markets will go back down because the world is in a bad shape.
On the other side of the coin, miss the initial recovery and miss the most of it. In the last two to three days the markets are up about 10% already.
It is sad, though, to see the spectacular numbers on the upwards and know that the real amounts are only a fraction of the losses sustained earlier. Ten percent rise today was only a 8-9% fall yesterday.

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