What does it mean you might say? I think it means that with a cooling European, Chinese, and Japanese economy as well as many others, the U.S. now is almost the only game in town and dollar for dollar much safer than other places to invest in relatively speaking. You are seeing this worldwide as investors beat a path to the U.S. Corporate investment door.
I'm not saying that U.S. Stocks and Bonds are as safe as they used to be, however, you can't even beat inflation in savings usually anymore at least in the U.S. so even though many people put their money in savings as a hedge against volatility, it is important to realize that you actually can't beat inflation which tends to average 4% a year (over a long period of years). So, when you put money in the bank you are actually losing ground through average inflation per year over time.
So, over time you likely will see more people invest in things like property which is what you are seeing across the U.S. As property values are raising (Finally) once again. Because traditionally over time (20 to 25 years or more) you can usually count on real estate property values beating inflation over most 10 year periods.
Dow Hits the Fast Lane Toward 15,000
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The Dow got some help from the Federal Reserve,
which released the minutes from its Open Market Committee earlier than
expected. After learning that 154 people had gotten the release,
including employees at some major banks, the central bank was forced to
release the notes at 9 a.m. instead of the usual 2 p.m. There was little
new information from the Fed, but the news seemed to confirm investors'
belief that the central bankers would keep present market stimulus
measures in practice until the economy improves and the unemployment
rate comes down. Some at the central bank said they wanted to reduce the
Fed's bond buying, but overall the market interpreted the report
favorably. Hopes for a better-than-expected earnings season also
appeared to drive stocks higher.
While tech stocks pushed the Nasdaq up nearly 2%, pharmaceuticals were the biggest gainers on the Dow. Merck (NYSE: MRK )
jumped 2.9% after announcing that the FDA had accepted a new drug
application for Noxafil, a drug for the treatment prophylaxis of
invasive fungal infections. Merck is seeking approval for daily use of
the application, which is already used for patients over the age of 13
who are immunocompromised. The new drug application is the first step in
a long approval process, but since the drug is already in use, its
chances of passing are significantly higher.
Pfizer (NYSE: PFE )
received similar good news today, climbing 2.8% after the FDA called
its experimental breast cancer drug, Palbociclib, a "breakthrough
therapy." The drug is in late-stage testing and could be a life-saving
treatment for many women who suffer from the often-fatal form of cancer.
There were only four losers among the 30 Dow components today, among them Wal-Mart (NYSE: WMT )
, which fell 1%. An Indian judge said he would seek more information
from the world's largest retailer about its illegal lobbying activities
in India. As Wal-Mart seeks to further penetrate the world's
second-biggest country, it has again run into legal problems, which
potentially include bribery. After hours, the company received some
favorable news as the Retail Industry Leaders Association, which
represents Wal-Mart along with other retailers, said it would opt out of
a $7.2 billion settlement with Mastercard and Visa,
a decision that could give retailers greater leverage over the credit
card lenders that take a significant bite out of their profits.
Can Merck beat the patent cliff?This titan of the pharmaceutical industry stumbled into 2013 and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a new premium research report on Merck, The Fool tackles all of the company's moving parts, its major market opportunities, and reasons to both buy and sell.
end quote from:
http://www.fool.com/investing/general/2013/04/10/dow-hits-the-fast-lane-toward.aspx
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