The Stock Market is rejoicing with some optimism (or overreaction, in my opinion) to the increase in ISM index and news of some growth in Australia and China. As a result, the Stock Market is way Up today, pulling money from the Bond Market. The Bond Market had a very good day yesterday, which was also a bit of an overreaction -that seems to be the trend of late, which is why I cautioned this week will be volatile. The reason why I say overreaction to the optimism is the ADP Job numbers came in at a negative number and the Construction spending was negative. The economic news that I view doesn't support growth. Because of the ISM and the news in the Pacific, some economists are thinking that we may not have a double dip, but a very modest growth period. Not to sound negative, but I personally prefer to see more improved, positive numbers before feeling too optimistic. Mortgage rates are still very good, but did drop a little from yesterday's high's. We will probably have some volatility tomorrow too, as we have the initial jobless claims released. Hold on to your hats because it will be a rollercoaster ride this week. Have fun!!!
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