Market Rally

After a really bad roller coaster ride for investors this week with some flash declines due to economic data. Friday investors decided to weigh in on the European crisis after getting good economic news from overseas. The markets rallied to a 277 point 2.30 percent increase on the Dow Jones and other markets today with short sellers jumping back in on the market rally. Investment brokerage houses however down graded stock valuations on several stocks like Rimm ( Research In Motion) and Ford Motor Co. due to poor overall performance. Some analysts see the market overall weakness as a sign of a possible return to a bear market in the short term future. In other economic news that hit investors and business this week is the GDP fell by more than one percentage point to 2.1 percent. This after the last quarter seen no improvement in growth reported by the Commerce Department for both this quarter and earnings for business in fiscal year 2012 stayed flat. Lots of investors reacted sharply to more companies laying off worker and shrinking investment in new product development by businesses this year. Economic pundits talked over this week if the currently proposed fix to European fiscal crisis is actually going to solve the problems that many EU currency nations are dealing with now. The current solutions to dealing with European problems have been the hot topic of conversation at many board rooms in companies in America and abroad. This month the Federal Reserve changed the interest rate and announced more change to the Twist program. This caused many on Wall Street to review their investment strategy and some institutional investors to bail out before the markets radically declined. On the bright side more investors seen new opportunity to buy cheap stock and make a profit even in a weak baseline market. Look for a new rallies next week as investors size up the news and economic data set to come out from Europe and from the Treasury and Commerce Department. Most analysts project a fiscal expansion on some sectors of the economy but with more bad news from government sources could cause a scale back by investors and businesses. The green shoots in the economy are driving some expansion that both business and investors see as a sign that the economy is about to greatly expand. How the expansion is going to happen is what makes investors nervous about their portfolios. With slow economic growth most business and individual investors are taking a reserved approach presently. When the opening bell for next weeks session on Monday happens for stock markets look for most of main street and wall street to jump fully back in the market indexes. Have a great weekend and enjoy it be prepared to get in early Monday and make some great money..