Friday, January 16, 2009

Markets Recovering

At least for a little while. Today's news:

Dow 8,281.22 +68.73 (0.84%)
S&P 500 850.12 +6.38 (0.76%)
Nasdaq 1,529.33 +17.49 (1.16%

Not bad gains, all things considered. The Japanese and European markets finished with positive gains, too. Oil has recovered somewhat, gold prices are increasing, both of which we should expect in a recovery.

Problem is that financials finished down half a percent today, as Bank of America looks like it is getting a wallop over the head and isn't anywhere near as stable as it looked. Yields on treasury debt have been falling too: if private investment was really starting to look good, we would expect to see people start running out of Treasuries and back into the market, driving up yield rates.

Not the case: The 10 year is still at 2.32%, a very low level

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