Today we briefly touched a precarious economic milestone. The Dow Jones broke the 13000 barrier for the first time since 2008. Is this a sign of economic recovery or false hope?
News of the Greece bailout briefly bolstered the US stock market today, pushing the Dow above 13000. This last year showed an inkling of a possible economic recovery as the stock market showed improvement.
Tech stocks appeared to be fairly bullish as well. Apple stock hit an all time high, breaking 500 recently. While, in my personal portfolio, Intel seems to be starting to look up.
However, how good is this news? I’m still waiting for the other shoe to drop on the housing market as the remaining balloon payments on the adjustable rate loans come due. Perhaps that can be stayed if we are able to push lenders to modify loans, but so far a surprisingly low number of people received the benefit of loan modifications on their mortgages.
Many are also suspicious about whether the bailout of Greece will actually help out in the long term. Greece is essentially refinancing and writing off a huge amount of their debt in the bailut. However, there are few provisions in the bailout to actually stimulate their economy. While the bailout will help keep the country from economic collapse, it may only be staying off the inevitable. They still need to come up with a strategy for economic growth.
The fear is that it’s only a temporary solution that just pushes off the economic collapse a few years, but doesn’t really solve any problems.
This will trickle down to effect the entire world, so even though the economy is showing some signs of growth, it’s still in a precarious position.
I still believe in diversifying my investments. As I mentioned earlier, I do own some stocks and I am cautiously optimistic.
Overall, I think it’s a good sign that the stock market is showing improvement. At the very least, it can give people some hope that our economy is moving in the right direction.
Perhaps it’s time to start researching the stock market and see if this recovery will be sustained. There are some good opportunities out there waiting for an investor.
It’s a good time to keep an eye out for some stock market investments. Follow up on the news around the world. There are small signs that we are starting to right the ship. If you do your research and investigation, you might find a good investment.