The world’s markets are awash in optimism this morning. Asia finished up 2%-3%. Europe bourses are up equal amounts, more towards 3%. Everyone seems to like Obama’s performance last night on 60 Minutes as well as Geithner’s new plan. There is little question that markets are hungry for stability and many believe we are, somehow, getting there. The talking heads have awoken up with positive vibes. Even Joe Kernan, the conservative host of CNBC’s Squawk Box is talking positively about Obama. Yikes!
Secretary Geithner unveiled his Public-Private Investment Program in great detail on Op-Ed of the WSJ. This is the kind of specificity that was lacking the last time he spoke about the bank asset purchasing program. He is challenging private capital to participate with the government to buy toxic assets off bank’s books. The discounts available make this a most interesting investment opportunity. Private capital would profit along with the (our) government.
US futures are up huge, the Dow would open higher than 200 points at these levels.
Gold is down a few bucks as money seeks higher risk in equities.
Oil is meandering, but seems to want to go higher.
Everyone is asking if the bottom has been put in. We will only know with time. I have been steadily adding funds to equities and will cautiously continue.
