Investment24: Currently Investors Blank Out Market Risks

Positive U.S. economic data cause further stock market returns

Baech (Switzerland), April 7, 2010 – The first quarter of 2010 ended with new highs at the stock markets. For the first time since fall 2008 the DAX could exceed the mark of 6,200 points again. This is a very positive development, especially from a chart technical point of view. Mid-term DAX could now increase until 6,500 points. Thanks to good economic data Dow Jones and S&P 500 could also reach new 18-months-highs before Easter holiday. Nasdaq even terminated trading with a 19-months-high. „The danger of a technical reversal is increasing gradually“, states Bernd M. Otto, CEO of Investment24.

The U.S. job market data, which were – at first glance – very good, were crucial for the positive development of the markets. The U.S. government had declared in its report, which was published last Friday (April, 2nd), that 162,000 new jobs were created within last month. This was only the third accretion of new jobs since the outbreak of the recession at the end of 2007. Likewise it was the strongest increase since March 2007. “The newest job market data are skewed by the fact, that most of the jobs have been created by the government“, declares Bernd M. Otto. In the private sector the number of employees diminished unexpectedly. This is also shown by figures, which were published by the private job market contractor Automatic Data Processing (ADP) last Thursday (April, 1st).

Additional stimulus to the economy was caused by positive U.S. real estate data. The index of the National Association of Realtors increased by 8.2% in February. Compared to the previous year the index is now 17.3% higher. This fulminant increase in particular arises from public tax subsidies for home-builders and buyers. Also the much-noticed ISM-Index for the service sector increased up to 55.4 points. This was a stronger increase than expected by analysts.

“The actual rally is in particular driven by State subsidies“, warns Bernd M. Otto from Investment24 Research. „If the economic data is too positive, the U.S. Federal Reserve could be apt not to let the interest rate near zero for an indefinite time. “This could lead to the point, that the inflow of new money at the stock markets stops”, states the stock market expert. Currently most of the market participants only notice the positive market data. Risks are blanked out. It remains to be seen, how long this onesided approach will drive the markets.

Investment24 AG, based in Switzerland, provides quality information about interesting opportunities on world stock markets. The company not only demonstrates a positive performance in excess of 350 percent since July 2007, but it also offers a high degree of transparency. This is in sharp contrast to other stock market or financial services newsletters. All transactions are explained in detail, and are provided with background information. These results are achieved with professional risk and money management. CEO and editor of the stock market letter is Bernd M. Otto, supported by experienced staff.
www.investment24.com

Investment24 AG
Saskia Bernhardt
Seestr. 67, 8806 Baech, Switzerland
Phone +41 44 8870091
media@investment24.com

This release was published on openPR.