Monday, March 26, 2012

The S&P 500 at 4-Year High

Dear fellow traders,

At the end of the trading day 26 Apr 2012, The Standard & Poor's 500 Index (S & P 500) gained 19.40 points, or 1.39%, to 1,416.51 (19 March 2008 High was 1,414).

The Dow Jones industrial Average (DOW) was up 160.90 points, or 1.23%, to reach 13,241.63. The tech laden Nasdaq Composite Index (NDX) climbed 54.65 points, or 1.78% , to 3,122.57.

Mr Ben Bernanke, Chairman of the Federal Reserve (the Central Bank of USA), spoke to a conference at the National Association for Business Economics, that the FED will consider further, supportive monetary policy aka QE3 (quantitative easing) to faciliate the expansion of production and demand from consumers and businesses.

In his talk, Mr Bernanke said the USA economy needed to grow more quickly if it is to produce enough jobs to lower the high unemployment rate of 8.3%.

The S & P 500 has been up 25% since the end of September last year, mostly on the optimism of the continued economic growth. With stimulus from the Fed and an improving economy, the conditions for the stock market to go up further is hopeful.

Yours truly,

Tony Chai