Graphic from the NY Times.
Good news for the economy means bad news for the Democrats. You can count this as bad news for Democrats:
Wall Street rode fresh evidence of a resurgent economy to its best finish in a year Monday. The Dow Jones industrials surged 201 points and all three major indexes posted the highest close since last summer.
The DOW isn’t everything, and unemployment is most assuredly an issue, but it appears that things are looking up for the economy (which I have been on record repeatedly saying that I did not feel the economy was as bad as people were making it out to be).
Stocks have rallied for three months as investors bet on an economic recovery by year’s end. Some analysts believe the market is firmly in an upward trend, citing improving corporate profits, although others believe stocks are due for a major pullback after advancing so quickly.
Since hitting a low for the year on March 11, the Dow is up about 24 percent, the Nasdaq higher 31 percent and the S&P is up 26 percent.
“The market is a bit overbought and has been for a few weeks now,” said Michael Sheldon, chief market strategist at Spencer Clarke LLC. “However, it appears the path of least resistance is higher for the moment. … As long as the economic news continues to gradually improve, it seems like equity prices most likely have further upside in the next six to 12 months.”
Whatever happens, it appears we have a bumpy road ahead of us. Cross your fingers and buckle your seat.