The recent stock rally and mildly encouraging economic data have investors feeling a little braver.
My question, who are these investors they speak of?
In their views on the market, investors are looking for better conditions than what has persisted since mid-2015. As for the ensuing actions the Fed might take on monetary policy, the view is now tilting back toward additional rate action this year.
Owing to a number of factors, the S&P 500 (.SPX) tumbled more than 13 percent from its mid-July peak to what could be a durable bottom established Feb. 11. Since then, the index has jumped more than 9 percent, with Tuesday's monster rally fed by a modest increase in a key manufacturing index.
Jim Paulsen, chief investment strategist at Wells Capital Management, has been cautious on the markets and economy. However, he said in an analysis released Tuesday that the economy appears to be stabilizing, and that in turn could fuel investor confidence.
"Eventually, stock investors may again become troubled by the speed and frequency of potential Fed interest rate hikes. Initially though, better economic reports should continue to calm recession fears and bolster Wall Street earnings forecasts," he said. "However, given that the missing 'catalyst' for the stock market has seemingly arrived — better economic growth — perhaps the stock market is headed for another challenge of the all-time highs."
http://www.msn.com/en-us/money/markets/suddenly-the-market-sees-growth-%e2%80%94-and-rate-hikes/ar-BBqfIig?ocid=iehp
I want some of whatever they are smoking.
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