Wall Street went higher and it was helped by a bigger than expected rise in pending sales of existing sales. In fact, it was the biggest in — wait for it — seven and a half years.
Oil remains close to $US69 a barrel and the Oz dollar continues to climb and is at 82.13 US cents, reflecting a belief in a China-led global recovery which will help commodity prices.
For the optimists and long-term investors, CNBC reports Ned Riley, the CEO of Riley Asset Management, believes in the rally and sees the Dow reaching 14,000 in the next two years.
Others think we can go higher and still endure a big sell off along the line, but if you are a long-term investor in great companies who can sleep at night when the markets overreact, this remains a great buying opportunity.
Against this and more relevant for short-term investors and those who can’t sleep on nights when markets overreact to the downside, there are many experts who still think a 15-20% correction is out there waiting to happen. However, I suspect there are less of these than there were a month ago.
Locally, we get the latest economic growth number for the March quarter and we could get a positive number. Business investment has been poor and could push us to the negative, but trade, retail and other elements that make up the economic growth figures have been better than expected.
It would be a great confidence booster if we get a positive number.
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