It may be time soon to ring the bell for Dow 16,000 — there are reasons to believe the June stock slump is over and a new leg up is under way, according to MSN Money.
The June stock washout looks done, and fresh economic data gives reason for optimism, MSN Money noted.
To begin with, last week's jobs report was stronger than expected, with
more than 200,000 positions added even as hourly earnings rose 2
percent. Researchers at Capital Economics "are wondering is this has
become a 'job-full' recovery in a reversal of the fast-growth/slow-jobs
'jobless' recovery we've gotten used to," MSN Money reported.
Labor's share of business income has fallen in recent years, while
corporate profits hit record highs, but that trend should ease now with
good economic benefits in the wings. (more)
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Interest Rates are not actually within the scope of the Fed’s power. It can create a base rate, but everything from there is indirect. That is why the Fed bought in 30 year bonds. It was hoping to create a shortage of long-term to reduce mortgage rates and encourage capital to buy mortgages. Everything they do is trying to INDIRECTLY manipulate the markets because they have NO POWER to actually dictate to the markets.
The Emperor is bare ass NAKED! He never had any clothes!This is a CONFIDENCE game. The Fed has been going around to the major banks warning them that their models will fail and need to be re-calibrated. The Fed realizes it has painted itself into a corner and cannot move. So the comments are trying to confuse the markets and hopefully prevent the bonds from collapsing. This is what has been going on. The Fed is telling the banks there will be NO FLIGHT TO QUALITY.