The train keeps on rolling as we’ve exited the best month in a few years and entered March with a bang. The S&P 500 gained 0.61% and the NASDAQ 0.90% to kick off the new month. NASDAQ 5000 has become a rallying cry for much of the financial media and today that level was hit. This was the first time it has crossed this level since March 2000 i.e. the month that the great crash began. By October 2002, the NASDAQ had fallen all the way back to the 1100 level! Relatively modest economic news had no effect on animal spirits:
ISM Manufacturing for February was 52.9, its slowest pace in 13 months; any reading over 50 signals expansion. Construction spending fell 1.1 percent in January. Personal income increased of 0.3 percent, while personal spending fell 0.2 percent in January.
People were more interested in news out of China – remember all central bank easing is a “good thing” to investors in this era.
The People’s Bank of China (PBOC) cut benchmark interest rates by 25 basis points to 5.35 percent on Saturday—the second cut in three months—as deteriorating economic conditions forced the central bank to shorten the time gap between policy moves.Continue reading