The Day Ahead: The Free-Money Reality Check
Holy cow, what in the name of Sam Hill happened last week? Not to appear too confused à la Foghorn Leghorn, but last week's market action was a reality check -- like taking a hammer to the side of the head. Regardless of the Federal Reserve's latest release of free money, the market is demonstrating a willingness to sniff around corporate fundamentals in periods of scarce important macroeconomic or monetary events.
Sure, market-goers griped that outcome uncertainty was being triggered by Spain's dance with the European Central Bank. Also, yes, there was an increase in the noise emanating from the fiscal cliff radio station as folks discussed the topic of dividends being taxed as ordinary income -- which partially explains why companies are enacting special dividends. But, when it was all said and done, the earnings warnings from economically sensitive companies reigned supreme, and served to shed light on the lagging nature of the Dow transport index. They also tossed cold water atop the red-hot advance in the Baltic Dry Index....660 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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