The Happy Feet Of “Irrational Exuberance” Lifts The Stock Market.
Yesterday, the Wall Street Journal published an article about the day’s stock market action. It was a good day. The Journal, although somewhat restrained, found an equities analyst who shows the signs of coming troubles, so utterly confident he was. This is happening more and more, and as always, signals a return to that “irrational exuberance” so well coined by Alan Greenspan. And when sentiment is that high despite a much worsening slew of economic data . . . Read on for a little bit more, and my short video “The Happy Feet of Irrational Exuberance,” Just click the nun at right. . .
May 31, 2011
Wall Street Journal
US Stocks Finish Higher, Shrug Off Weak Economic Data
The Dow Jones Industrial Average staged a late-day surge to close near the day’s highs, up 128.21 points, or 1.03%, to 12569.79. The Standard & Poor’s 500-stock index rose 14.10 points, or 1.06%, to 1345.20, while the Nasdaq composite gained 38.44 points, or 1.37%, to 2835.30. . .
In spite of weaker readings on home prices [an eight year low], regional manufacturing [In the midwest, new orders and production posted their largest declines
in several years], and consumer confidence [a six month low], all but one of the 30 Dow components and all 10 sectors in the S&P 500 were in positive territory.
The Journal story continues . . .
“Kent Engelke, chief economic strategist at Capitol Securities Management, said he has been unconcerned by the recent spate of negative economic news.
“Tell me something I don’t know about housing,” he said, while adding that “volatile” regional manufacturing surveys were still outweighed by a general expansion in the U.S. manufacturing sector. “Underneath the surface, economic activity is actually stronger than anticipated.”
Uh huh. Well, despite the euphoria on display by the unidentified stock broker below, I do not have happy feet . . .
Excellent use of monkey