The US equity market or in any stock market, as usual, is ahead of the (US) economy. When US stock/indices start to rise in October 2011, the US data started to improve, right? Most of the US data had been pretty good so far, with the latest being, the Non Farm Payroll and Unemployment data.
With the exception for the Euro Zone; the US, BRIC, emerging markets, Asia reported
· Better data namely PMI,
· Monetary stimulus,
· Corporate earnings beating expectations,
· Lowering interest rates (in support for growth vs. Inflation).
And some of you probably know that the volatility index is at current at 20 thereabouts from readings as high as 45!
And what does the last two points encourage? That is, in an environment where interest rates are low and volatility is not high. It encourages...
