Good news coming from Wall Street today, as the
Dow Jones Industrial Average rose 258 points, or 2.9%, to close above 9,000 for the first time since November. Standard & Poors 500 index gained 3.2%, and the Nasdaq composite rose 3.5%.
Numbers have been rising since this past Wednesday but experts are remaining cautiously optimistic,
according to CNN.coms David Goldman:
Investors should brace for wild market swings as companies and the economy struggle to rebound. This past year was marred by horrid corporate results, record high oil and gas prices, dismal housing news and a full-blown shakeup on Wall Street.
"A fair amount of damage has been done, and earnings need to stabilize first," said Tobias Levkovich, chief investment strategist for Citigroup. "Before the patient gets better, let's make sure his condition doesn't worsen."
On many days, analysts predict markets could tumble on poor corporate earnings and sour economic news. But optimism about the new administration and apparent success of government interventions will help stocks skyrocket on other days.
2009 may be better, but stocks won't rise in a straight line to recovery. A majority of analysts expect that in the first months of the year, the S&P 500 index will test its 2008 low of 752, set on Nov. 20, even though the market has recovered more than 16% since then.
"The market could end up tracing out the [crooked] design on Charlie Brown's shirt," said Sam Stovall, chief investment strategist for Standard & Poor's.
Were hoping that crooked line ends on an upswing, and there have been some positive signs of late that indicate thatll be the case. With the
Feds decision to lower interest rates to record lows, improved handling of nationwide credit, and
President-elect Barack Obamas proposed stimulus plan, its beginning to look like our nations economy may finally be getting just a glimpse of a light at the end of the tunnel.
Has anybody had the chance to notice any other trends that may be generating this optimism? Whats your optimism level? Do you think weve gotten ourselves on the long road to recovery?
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