Wednesday, March 11, 2009

Will The Rally Continue?

Good news, we are are not in a drastic sell off at all. If the positive gains hold, even if it is small, it is a sign that we could gain some momentum for a prolonged rally. President Obama and Geithner just finished up some remarks about the G20 meeting. Two important things developed from the press conference. First, both Obama and Geithner spoke, and the markets held up! Second, Obama made some good remarks about how important global trade is, and that it is top priority of his to make sure America doesn't have protectionist policies. This is a relief to many people because I know there was a lot of buzz before that the U.S is going to appear as a protectionist with the buy American Clause.

It seems that in the past few days, the Obama administration has been making a better effort to be more clear about their policies. Shelia Bair, Bernanke, Geithner, and Obama have been giving more clarity and seem to finally be on the same page.  

Geithner also told viewers last night on Charlie Rose that the much anticipated toxic asset plan is close to being finished and that the details should be out in the next few weeks. He did say that the plan is going to be set up so private investors can buy toxic assets. This was cheered by many people who were afraid that the government was doing too much and that more private investing was needed.

These FUNDAMENTAL changes, given that no bad news comes out, should keep the rally going.

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