Safety is the only reason to hold those securities. Remove the European contagion risk and that money will move out of bonds into stocks. I think some of this year’s buying reflects investors anticipation of that
We are going into the weekend with a Monday meeting of the European Finance Ministers and a Wednesday meeting of the World Economic Forum. Both will feature press coverage and commentary by pundits that could cast a pall on global stock markets.
Without the “European” problems, our stock markets would press upward, gaining traction asmoney moves in from the sidelines. It may do so even if Europe’s problems continue.
If buyers just step back for a few days to get a better handle on what comes out of next week’s meetings, the DJIA could slip back to 12,410 (S&P 500: 1289). For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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