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25th January 2008, 08:07 AM
The Dow Jones has staged a massive rebound in the past three days - +128, +298, and overnight last night +108. The trading yesterday was a good sign after such a large jump on Wednesday, normally investors would take profits (which would generally weaken the index) and start a sell-off. However, trading yesterday consolidated on the Wednesday's trading and wasn't over the top; and that is a good sign of confidence. The gains in the US are due to monetary policy changes to free up the pain that US citizens are feeling. If there is more money in the average Joe's pockets, the more likely they are to spend it which will kick start the economy there and move them further away from the slow down (recession) that they are in.
The ASX rose 100 points yesterday as a result of the huge gain in the US on Wednesday. The expectation is to see the recovery continue today.
The ASX rose 100 points yesterday as a result of the huge gain in the US on Wednesday. The expectation is to see the recovery continue today.