Thursday, November 30, 2006

Merry moment for the US market but who knows for how long!!!!


There have been quite a few speculations about the slowing economic growth in the US and making it almost a far away dream to expect any progress at all, but now with a stong GDP growth has given a sigh of relief to many . Now inflation doesn't seem to be a problem at all , since the GDP expanded at an annual rate of 2.2 percent last year ,this message is being translated back to the stock market. During this period inflation rate seemed on a lower side showing a positive side that the Federal Reserve may not after all increase the interest rates. But this can be for a short period since it may be possible that the almost stagnant housing market is still a threaten to the economy and the markets.

But keeping the housing market aside, the S&P 500, the Dow Jones and the Nasdaq climbed by 0.9 percent, 0.7 percent and 0.8 percent respectively wherein the telecom and Commodities market saw the best boost.

I feel this is an optimistic market but also a very risky one, I feel that the market may go up for some more time , so be careful how you put your money here.

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