Friday, May 1, 2009

Asset Class Update

Here is an update of a table we published in early April:.


It shows that the average US equity asset class was up 13% in April, and an astounding 35% since the lows hit on March 9th.  This is probably due to all of the great news we had in April - Pirates, Swine Flu, Chrysler Bankruptcy...  

So if there really hasn't been any good news, why are stocks up so sharply?  Some say that it is just a bear market rally and we will end up back down at the March lows some time soon.  They could certainly be correct.  My personal opinion is that all of the money that has been "printed" by the Federal Reserve is beginning to affect price levels, and rising stock prices are the first sign of this.  We will delve deeper into this idea in next week's blog posts.