Thursday, March 1, 2012

Why the stock market rally won't last



With no signs the Fed will launch another round of bond purchases and with corporate profits expected to slow, the party won't last for U.S. equities.

FORTUNE -- Wall Street's bull market reached a few milestones this week: The S&P 500 index closed at double its bear market low from 2009. The Russell 2000 small-stock index closed at a new all-time high, erasing all of its 2008-2009 bear-market losses. And the tech-dominated Nasdaq composite index rose to its highest point in a decade.

It's easy to attribute the rally to the slew of cheery economic data. But what's really driving the bulls has more to do with investors frustrated with virtually zero returns on cash.

Read more: http://finance.fortune.cnn.com/2012/03/01/stock-rally-ending/?iid=HP_River

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