10 for and 10 against continued growth stocks
Let everyone chooses what he prefers. U.S. stocks still keeps in sight the historical records and Europe convulsed around the Cyprus problem, but the bulls still have a number of strengths in the hole cards.
10 arguments for the continuation of the rally
First Banks thrive
Yes, the big banks are not too popular, but their good performance is a good sign for the market and the promise of better credit activity. The risk of systemic failure in the event of a fall some of the big banks is virtually gone.
Second Against the Fed does not make sense to fight
Doubts about the length of quantitative easing and zero interest rates are gone. Bernanke wants to be managed equities and real estate, while a decline in unemployment.
Third The labor market and consumption
Unemployment rate of 7.7% in the U.S. is the lowest in four years. Pleasantly surprised and retail sales in February, with more expected impact of budget cuts on consumer confidence.
4th There is no recession in the U.S.
5th Real Estate Market
The recovery involved real estate market. Home prices will probably bottomed out, sales will grow.
6th Industry thrives
Durable goods orders, industrial production and purchasing managers indices are clear - the U.S. is on track, although it may not be without obstacles.
7th Investor sentiment is overly optimistic
American Association of Individual Investors on Thursday released data showing that once again the share of bulls among small investors (38.9%). Equity indices are those near historical peaks, which could cause unbridled optimism in the market. Growth at relatively careful balance of power between bulls and bears is a good sign.
8th Cash, wherever you look
A lot of investors waiting for the money out of the market, companies have record cash reserves, since the beginning of the company on mergers and acquisitions have issued almost three times the amount in the same period of 2012.
9th New high does not mean the final
Any reaching a maximum in the S & P 500 does not cause reversal of the trend. Since 1950 in the 13 to overcome historical highs in the worst case even shares added 2.3%, even in the best of 221.6%. The sample of cases is small, but pessimists can get a little swayed.
10th Shares can strengthen the independent development of the economy
Economic factors for the development of stock prices are unquestionable, but it is quite common that the stock market is growing at a time when the economy is doing well.
Last news from the section World markets:
12.12.2018 4 kroky k výběru spolehlivých oken
Michal Dvořák, TradeCentrum
Patrik Mackových, TopForex
Jonáš Mlýnek, LYNX
Zdeněk Ďuriš, EKKA-Gold
Štěpán Hájek, Bossa
Štěpán Křeček, BHS
Silvia Holá, xPartners
Jakub Petruška, Zlaťáky.cz
Patrik Hudec, GENERALI