Saturday, February 19, 2011
Stock Market: Celebrating the Double
The S&P 500 index, the barometer of Wall Street, climbed from its low of 666.79 on March 6, 2009 to 1.344 on Thursday Morning. Yesterday the S&P closed on 1,343.01.
This was the fastest double since the research firm S&P started publishing the index in 1957.
Why is that?
The world economy, especially in Asia is healing much faster than many thought. That translates into rapidly rising company profits.
Both processes are continuing, thanks to the high productivity of the economy. In the last recession companies learned to be more efficient, and now they will be mean & lean in the global economic upswing.
When will we see the next double?