4/26/10

Markets love crises

April 26 (Bloomberg) -- Stocks climbed, led by the biggest gain in the Nikkei 225 Stock Average in seven weeks, and commodities rallied as economic reports pointed to faster growth and concerns about Greece’s debt abated. The yen weakened.

The MSCI Asia Pacific Index increased 1.6 percent to 127.25 and the Stoxx Euro 600 rose 1 percent to 270.14 as of 4 p.m. in Tokyo. The Nikkei jumped 2.3 percent, the most since March 5. Standard & Poor’s 500 Index futures gained 0.1 percent. The yen fell to 125.96 per euro in Tokyo from 125.73 yen in New York on April 23. Oil in New York rose 0.4 percent to $85.42 a barrel, extending a 1.7 percent advance from April 23. Copper climbed 1.2 percent and rubber gained 1.6 percent.


My view. Markets love crises. Why? because our leaders respond by printing a lot of money to save those creating the crises.

And the markets strive on liquidity. The time to worry is when the world leaders tell us they are not worried anymore. This is the time when liquidity shrinks and the markets pause.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest

To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs.

I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.

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