NVDL: Beware of articles such as these. Here's a tip: the word 'recovery' ought not to be bandied about for several years. Instead people need to get into the habit of changing their consumption, of SAVING. No one wants to do this, but everyone wants to be tempted by the hope that somehow we can fall back into our old ways. We can't. It's over. But expect the Media to carry these sort of stories to muddy the water.
I am probably not the first, and definitely not the last, to write about the recent surge in stock markets worldwide. It has been so long since investors have had a strong rally like that to play with. Now that markets have rallied almost 10% worldwide in one week; one question remains: Is it safe to invest in stocks again?
There is exceptionally strong evidence that the recent earnings announcement by three of the biggest banks in the US (that all three made profits in January and February), at a time when almost everyone gave up on them, was the trigger for the rally. It is still unclear and too soon to really say that the worst is over for these banks, but we can now admit that the Fed actions the past few months have been a success and that it clears the sky a bit.
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