Bullish momentum dominated Wall Street this week as the Dow Jones Industrial Average surged into uncharted territory, posting record-breaking all-time highs. For the most part, investors cite the market’s four-year climb off its 2009 lows and the Dow’s record closing to the Federal Reserve’s aggressive and unprecedented monetary stimulus measures, which have helped push equities higher by driving down yields in safe-haven assets. Strong and growing corporate profits have been bolstering this upward trend, as well as a rebounding housing market [see Visual History Of The S&P 500].
Meanwhile in economic news, the Institute for Supply Management non-manufacturing index climbed 56% in February from 55.2% the month before, a good sign for the services sector. Also according to the Fed’s Beige Book released this week, economic growth continued to show improvement in January and early February as consumer spending picked up [see 3 Economic Charts Bears Love To Ignore].
Below we outline seven insightful articles circulating around the financial space this week:
- Wrong Question at The Reformed Broker
Though there are some that were lucky enough to ride the bull train from the beginning of 2013, some investors are wondering if there is still time to get into the market before it’s too late. In this article, Joshua Brown discuss his thoughts on the question “Is now the time to get in?”.
- Value Stocks and Dividends at Rick Ferri
The value investing strategy has long been an investor favorite, as these equities have garnered steady and attractive returns over the years. In this piece, Rick Ferri highlights value stocks’ performances over the years and explains how he interprets the “value premium.”
- How To Navigate Volatile Stock Markets Through Market Timing at Morpheus Trading Group
Trading is by no means an exact science; instead, it requires great discipline and patience. Experienced trader Deron Wagner outlines one way investors can use market timing strategies during times of elevated volatility.
- The Current State Of The Macro Policy Debate: Musings on Paul Krugman vs. The Three Tweeters of Bruxelles at Brad DeLong
As the Fed continues to reassure the markets that it will continue its massive stimulus program, many are left wondering what exactly Washington will do to tackle our nation’s debt problem. In this article, Professor of Economics J. Bradford DeLong discusses both sides of the Keynesian expansionary fiscal policy argument.
- Sequestration 101: The Sky Is Not Falling at Financial Sense
Though March 1 marked the automatic round of government spending cuts, many are still arguing over the economic impact of this massive fiscal event. In this article, Richard Larsen describes his view on the sequester, explaining why he thinks the cuts will actually be beneficial.
- Time for Market to Show Its True Mettle – Searching for Alpha for March 2013 at AdvisorOne
Though major U.S. equity indexes continue to hit record levels in 2013, investors remain understandably leery of what exactly the economic outlook will be in the next few months. Ben Warwick reminds investors to take a look at the bigger picture in his article, explaining which way he thinks markets will go in the long run.
- The Biggest Lesson From Earnings Season at A Dash of Insight
With the fourth-quarter earnings season nearly wrapped up, investors have for the most part been pleasantly surprised by the results. Jeff Miller, however, has somewhat of a different viewpoint and in this article he explains what investors should take away from the previous earnings season.
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Disclosure: No positions at time of writing.