By Jon D. Markman
Contributing Writer
Money Morning
Why we are in the sweet spot
Why is it important to have government and central banks on your side? Let's take a look.
The most important ingredients for rising stocks prices are not corporate earnings and global economic growth. Instead, the key elements are interest rates, inflation and sentiment along with help from government fiscal and tax policy.
Right now, we are living in golden times for the "Big Four:" Inflation is low, interest rates are very low, governments around the world are pouring money into the economy and sentiment is still well below bull market peaks. Historically, analysts at independent BCA Research say, this is the environment in which stocks prices have done their best.
As long as a recovery remains anemic with lackluster job growth, it remains the subject of tender mercy by policymakers desperate to placate an unhappy electorate. And so it is weakness that keeps the government from withdrawing assistance by applying higher interest rates, raising taxes and halting loan support programs. |
狗仔卡
发表于 2009-9-8 05:40 AM
提升卡
置顶卡
沉默卡
喧嚣卡
变色卡
