January 21, 2013
(Posted 7:26 PST) US markets are down on a small home sales decline, but the decline is not very convincing and there is a feeling that a rally is in the cards. Profit reports have been mixed thus far and there is little going on internationally to provide direction. Gold and oil are near unchanged and interest rates are stable as well. A recent report shows that investors are apt to put more money into equities over the next six months. Worries over the debt ceiling debate are waning since it appears that House Republicans are not up to the task of investing political capital into the issue at this time. As debt selling worries fade positive momentum should pick up. Budget cuts are definitely on the horizon, but low interest rates seem to be fueling a robust global economic recovery that may linger.
