From Myth To Reality With David Rosenberg
January 3, 2013 - 8:05pm
From Gluskin Sheff's David Rosenberg Myths And Realities Markets always operate at the margin. And what just happened at the political level was an 11th-hour deal that effectively removed the risk of a severe fiscally-induced recession, supposedly beginning this quarter. Whatever odds there were of this occurring, and judging by levels of market valuation and investor sentiment surveys, there was some, but never a whole lot of "fiscal cliff being entertained as a base-case scenario, it is that "some", no matter how small, that was removed from the range of near-term possible outcomes. So after the worst post-Christmas market performance since 1937, we had the largest surge to kick off any year in recorded history. The Dow soared 308.41 points, or 2.4%, to 13,412.55 with all 30 components in the black. The S&P 500 index climbed 36.23 points, or 2.5%, to 1,462.42, again with all ten se...
Continue reading this article »
Share This Article: