The last few days have seen the equity markets continue their January rallies…Uncle Ben has decided to run the presses again and flood of ‘fiat’ money has pushed hard assets up..Gold has been the big winner ,trading now at 1720.Expect further rises in resource stocks in the coming days..Banks led the way Wednesday and now the big stocks are catching up..BHP/RIO etc all posting solid gains this morning..
Today will be quiet with many participants taking the four day weekend…but looking good..my worries about complacency seem to be misplaced at the moment and the flood of optimism is winning the day…the central banks will do everything they can to avert a crisis..let’s hope the politicians feel the same way.. I expect banks to push higher as well as we head into reporting season in February and play leapfrog with resources..
January is turning into a very positive month for equity markets…the statisticians say that if January is good, the rest of the year will follow..would be nice!!
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