Tuesday, April 26, 2011

Stocks Rally! $$

Stocks rallyThe wall of worry is for losers! Stocks rally on better than expected consumer confidence and earnings.

"The gain over the last month, while not substantial, is nonetheless encouraging given the recent spike in food and fuel prices," said Jim Baird, partner and chief investment strategist for Plante Moran Financial Advisors in a recent note. "The survey suggested that inflation expectations actually eased a bit, while consumers viewed current broad economic conditions more favorably for the seventh consecutive month."

The bottom line is that we should expect some inflationary pressures as the economy improves and people are finding jobs. Overall, it's a good thing. We don't want to see a boom or a bubble, but manageable sustained growth.

Still, the Fed can't keep interest rates near zero forever and the QE (quantitative easing) will have to end.

Bottom line is that despite the wall of worry stuff, stocks keep moving up. CNBC had a guy on talking about a double top, but we should be moving up and beyond that today.

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