The Markets Hang Tough
Although most of the global equity markets have slipped in recent weeks, the U.S. continues to hold strong. Anecdotal evidence continues to show that the domestic retail investor is not the source of the strength and remains a net seller of equity mutual funds. U.S. institutional investors are marginal buyers at best. Insiders have been busy sellers in recent weeks, leaving U.S. corporations as the most likely buyers, keeping U.S. equity prices trending higher.
Given the robust profit margins of the U.S. corporate sector, in concert with continued strong cash flows and low interest costs, this should not come as a big surprise. These buyers, along with a vacuum of selling interest, allow U.S. shares to defy gravity and push higher in the face of continued deterioration in Europe....678 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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