A remarkable thing has been going on in the midst of so much bad financial news of late.
Hope.
Somehow the collapse of one of the five largest investment banks, Bear Stearns, has been seen as a market bottom by many so called experts and the market itself apparently. Since the announcement of the Fed backed JP Morgan purchase of BS last week—which was amended yesterday— equity markets have experienced an impressive rally, nearly 800 points in the cash Dow since the lows of Monday March 17.
Why? Is it positive economic news? Not according to today’s numbers. The Conference Board announced today a 12 point drop in consumer confidence to 64.5 in March. The second consecutive double digit decline, keeping the index at a five-year low.
