ETF/No Load Fund Tracker StatSheet
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Market Commentary
Friday, June 29, 2012
EXUBERANCE RULES ON EU PLAN FOR SPANISH LENDERS — BUT WILL IT LAST?
US stocks soared Friday with the Dow recording its biggest monthly gain in 2012 as European leaders struck a ground-breaking deal to bolster the economies of the affected members, pushing all the three major indexes up by more than five percent in the first-half of the year. Supporting the rally were short covering and quarter ending window dressing.
EU leaders agreed to ease lending conditions for Spain’s struggling banks and relaxed terms of possible help for Italy while consenting to a $149 billion economic growth plan for the single-currency region. At this point, it’s all euphoria, as we’ve seen before, and it remains to be an open question if this plan not only has merits but can actually be implemented.
One analyst succinctly stated that “for now, party on and turn that hourglass over as more time has been bought, but only the symptoms are being fought as the underlying disease of excessive debt and lack of growth still remains.” Well said. Next week will show if this “surprise” announcement has the depth to alleviate the uncertainty that have gripped global markets.





