Sentiment has gotten so bad that some of the smarter folks we talk to have been calling for a savage rally, possibly one lasting through the early Obama presidency. This could be the start of it.
The same folks almost uniformly regard this as a sucker’s rally, at least for now, but if the market really gets up a good head of steam we expect that will change.
(What good is a sucker’s rally if it doesn’t eventually suck most people in?)
Bloomberg >— Stocks in Europe and Asia rallied and U.S. index futures climbed after U.S. President-elect Barack Obama pledged the largest infrastructure-spending package since the 1950s to stimulate economic growth.
CRH Plc, the world’s second-biggest building materials maker, and Siemens AG jumped more than 6 per cent as Obama said he’s planning the biggest public works program since President Dwight D. Eisenhower created the interstate highway system…
The MSCI World Index added 2.7 per cent to 871.63 at 8:47 a.m. in London as all 10 industry groups increased. Standard & Poor’s 500 Index futures jumped 2.5 per cent, and Europe’s Dow Jones Stoxx 600 Index advanced 5.5 per cent. The MSCI Asia Pacific Index increased 4.3 per cent as India cut interest rates and unveiled a $4 billion stimulus plan…
Stocks have fallen so far that 2,267 companies around the globe are offering profits to investors for free. That’s eight times as many as at the end of the last bear market, when the shares rose 115 per cent over the next year.
Companies in the MSCI World trade for an average $1.17 per dollar of net assets, the lowest since at least 1995, and 39 per cent sell at a discount to shareholder equity, data compiled by Bloomberg show…
Copper for delivery in three months snapping a seven-day losing streak, rising 4.5 per cent in London.
Oil rebounded after six days of declines, with crude for January delivery gaining as much as $2.57, or 6.3 per cent, to $43.38 a barrel in after-hours electronic trading.