Today´s stock market gains may also be the result of a reality check. This morning we learned that the US economy is sounder than the alarmists want us to believe. We got news that US retail sales increased 1.1% from February to March (seasonally adjusted), and sales were up 3.8% from March 2013 - the best sales data since 2012 (bloomberg). This shows that the US consumers don´t care about the fearmongers in the media and ignore the hysterical behavior of hedge funds and other speculators. The consumers show still optimism and spend money.
Since the retail sales are an important engine of the US economy the consistent consumer spending will continue to create economic growth which will translate into further stock market gains, I believe. I also think investors could learn from the consumers and show more reliance. The panic we saw in the last week doesn´t make any sense.