The Wall of Worry Returns
Early in the week it looked as if the market was set to climb the proverbial wall of worry again. Sentiment was increasingly bearish and the economic news flow was mostly negative, but we had a spike Tuesday when the ISM number was better than expected and then held up well Wednesday even though the ADP jobs number was soft.
Over the last several years, the market has had a strong tendency to rally in the face of questionable economic news. Time and again, market players have been caught underinvested as the market shrugged off negatives and went straight up. What ends up happening is the skeptics do some buying for fear of being left out again. They may not be true believers, but they buy anyway, and that sends the market up that wall of worry. It has often worked quite well, especially since the Fed's quantitative easing programs have helped provide strong underlying bids....252 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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