Now that money is free (the government raises money for free and passes it along by sopping up debt at any price), the market thinks it’s time to party.
After a 360 point Dow rally, 9,000 is back within site. Two more days like this, and we’d be back within five digits. The big winners: Financials, especially the investment banks like Goldman (GS) +15% and Morgan Stanley (MS) +18%.
The retailers also turned in a strong day after not-terrible results from Best Buy (BBY). Perhaps this end-of-year rally will create just a smidgen of wealth effect to salvage the holidays. Perhaps.