One Hot July!! Literally.

And I am not just talking about the U.S. heatwave that has affected most of the country. The U.S. markets were on fire in July with all three major indices closing out the month up approximately 7%!! That’s for the month!! Unbelievable and that’s in the midst of a declining GDP, go figure. This has been one of the strangest and most counterintuitive markets I have ever seen. You are taught that markets are always forward looking and if this resiliency keeps up then 2011 and 2012 could become stellar years for equities. I have thought all along that the interest rate environment we find ourselves in is very bullish for the markets and just maybe this is the key component for the floor that seemingly has been put in.

I am very interested to see the July jobs report at the end of next week, for any slight signs of improvement could only add fuel to this hot market.

Have a great weekend.