I know this is going to sound like a broken record and that I’m a lone voice in a wilderness, but the big “surge” yesterday had nothing to do with the economy, investor sentiment, Barack Obama or Warren Buffett.
The U.S. Stock market is no longer valued in dollars, but is still priced in dollars. The Euro is the defacto world currency, just as the WTI oil price is now meaningless and the world prices oil based on Brent Crude.
Because of the announcement yesterday that the French and German taxpayers are going to be paying for the failing European bailout fund, the Euro surged against the U.S. Dollar.
When the value of the U.S. Dollar drops, the price of the Dow Index goes up. That’s all that happened yesterday.
Yep, been trying to explain it to people for years… the index has been monetized.
i.e. Indices rise/fall based on the dollar exchange rate, not underlying stocks values.
Indeed, a few stocks have posted real gains, but anyone who observes the FOREX, gold/silver (commodities), and the crude oil price can see what is actually occurring.