As I have noted, I think that the Fed will abandon its ZIRP (billn - zero interest rate policy) next spring, far earlier than consensus, in response to stronger-than expected economic growth, which will not be bad for equities. In the meantime, the tone of the market remains good, although I am a little disturbed to see that other stock indexes, such as EAFE, Emerging Markets, and even the US Russell 2000 are failing to make new high ground like the Dow and the S&P have in the last few days. If the S&P 500 Index could convincingly close above the 1100 level, I think we’re in for another good upward run.
--- Jeremy Siegel, 11.16
Billn: NB - If there is dramatic GDP improvement in the next months, the Fed will raise rates. WRT the S&P, as I type this it is at 1109, so Siegel's theory will probably be tested soon...
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