Wow! Could anyone ask for a better start to the new year? I am referring to the market bounce this morning. Right out of the gate – bang! Now, if it holds up through the day, we just might see a January rally, on top of that rally way back in 2010.
NEW YORK (Reuters) – Stocks rose on Monday, lifting the Nasdaq 100 to a 10-year high, as investors bet a 2010 rally would continue in the new year and factory and housing data pointed to a strengthening recovery.
It seems so long ago or that the global economy stood on the edge of an abyss, a dark hole that some said would swallow what remained of our once vibrant commerce. Then again, maybe it seems like yesterday to some. I guess it depends on your perspective. In either case, the facts are the facts, and what was “great collapse” some two-plus years ago looks now to become the “great recovery.” Manufacturing is on the upswing, as is construction spending, both of which are integral to an economic recovery.
WASHINGTON (MarketWatch) — The U.S. manufacturing sector grew in December at its fastest pace in seven months, marking the 17th straight month of expansion, according to a closely followed index issued Monday. The Institute for Supply Management said its index of factory activity rose to the highest level since last May … while the Commerce Department said construction spending increased to its highest level since June.
To have a strong recovery, though, small businesses need access to capital, something that has been in short supply since the financial debacle of 2008. It appears that obstacle is slowly crumbling.
CHICAGO (Reuters) – Borrowing by small U.S. businesses jumped in November to the highest level in more than two years, PayNet Inc reported on Monday, as entrepreneurs invested in their businesses and did a better job of paying existing debts.
With recovery comes pain, though, pain in the form of inflation, that thorn that comes with the flower on the rose bush of recovery. Yes, Bernanke must reach carefully into the bush to avoid sticking us all with that hyper-thorn just behind the beautiful flower.
NEW YORK – The price of oil is poised for another run at $100 a barrel after a global economic rebound sent it surging 34 percent since May. That could push gasoline prices to $4 a gallon by summer in some parts of the country, experts say.
So what say you? How does the new year look to you? Are there bears out there? Does anyone want to pick a fight with me over my “rosy” outlook for 2011? Come on now, someone must think I am nuts?
Trade in the day; invest in your life …
