Stocks soared on the first trading day of December with the Dow, S&P 500 and Nasdaq all posting gains of over 2%. The rally started with reports that the private sector posted its largest gains in employment in 3 years and that manufacturing continues to grow here and abroad. Even global stocks surged on reports that the European Central Bank may be close to containing the financial crisis that currently exists across the pond. Today’s reports follows weeks of market volatility and losses, however each time the markets have pulled back it has been met with undeniable support which over the long term is very bullish.
In my humble opinion job growth in the private sector is critical in order for this economy to not only get its footing but to grow again in a consistent manner. In Washington there is talk about extending the Bush tax cuts across the board, and if that happens I believe private sector job growth would accelerate in a meaningful way and the stock market could potentially begin to make new multi-year highs. Let’s keep our fingers crossed that the policy-makers in Washington takes this pro-growth approach.
Have a good evening.