It’s Not a Bubble – It’s Stimulus

After three weeks of sharp, then steady declines, the market looks to have turned a corner, up six of the past eight days. The market has clawed back half of what we lost in September.

This is the face of decidedly mixed economic data last week, good housing numbers but a decidedly mediocre employment report. Stimulus talks are continuing and seem to still be makings surprising progress, which has helped turn the market. The election is still a risk, though the avalanche of Republican leaders who have come out in and said we will have winner and the widening polls seems to have assuaged the market somewhat.

The market likes steady.