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global expansion staying?

U.S. markets are higher and less volatile. The economy still feels weak.

Barclays analysts released their new Global Outlook - stating to stay in stocks. Ben Bernanke, Federal Reserve chairman, has said that stock market highs are not a new bubble. He said stocks should be high because companies are booking strong profits.

The economic confidence has not been boosted with the stock market numbers. Does the global expansion have staying power? The Fed bond buying hasn't hurt, keeping interest rates low.

Are we sleepwalking? Maybe.

One item to look at is volatility and it has been low as of late, indicating steady stock price increases and a recovering economy. The Bernanke approach will continue. He said low interest rates in advanced nations benefit the world economy.

Volatility will not remain low. Will value producing profits remain high? That depends. More chapters of the long-term debt purchases by the Fed have to be written.

Source posts: How To Square the Market  Bernanke Says Easing by Advanced Nations Helps

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