Monday, February 28, 2011
Stocks on The Rise
This article touches base with the reasons behind the abrupt turn-around of the US stock market in the past year. According to analysts, there was a major concern with the global oil supply, they were concerned that an excess supply of oil being sold through Lybia would be too much for the market to handle. But to their surprise, the oil prices surged this past week, despite the looming supply issues. There has been three major components that have helped the stock market rebound in the manner that it has in the past year. Overall spending has increased, personal income has increased, and consumer confidence has increased as well. With these three factors on the rise, the market has begun to move towards the "pre-crisis" numbers. The question being, when will we meet and exceed these numbers.
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Our economy has been at a steady constant growth towards recovery this past year. Reasons for this growth have been increased spending, increased personal income and increased consumer confidence. The stock market has greatly benefited from these three factors rising. It is important for consumers to take advantage of the stocks rising. Value investing is important, when determining what companies are great and have the potential for long-lasting returns. However the important thing is for consumers to wait and buy the stock at a discount rate relative to its intrinsic value. Its where you find a great company and basically wait for it "to go on sale".
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