As markets flirt with new all-time highs, we caught up with Cheryl Cassone at Fox Business Network who has been getting some reactions from professionals:
1) We’re currently hitting 5-year highs on the Dow, and we’re within spitting distance of all-time highs. Any thoughts?
There seems to be some technical resistance to closing above 14k on the Dow and that magic mark of 1500 on the S&P. I think there are a few things that are keeping us on hold. On the positive side, we’re seeing a big rotation from bonds to dividend paying stocks, and several analysts have told me that stocks are relatively cheap compared to bonds. The debt ceiling debate and sequestration seems to be a non-issue. Investors are saying that they’re going to buy into the stock markets no matter what. Interest rates are incredibly low right now, and it seems like investors are willing to chase those returns. Even if the Fed decided to make a move upwards next year, I think we’ll be out of the woods by then. Beware of short term pullbacks, and try not to let them worry you.
2) What’s the sentiment on the exchange floors?
Traders are getting back to business, which they haven’t been able to do for a long time. From the election to the fiscal cliff, the Consumer Financial Protection Bureau, or Dodd-Frank, the list of major obstacles is finally dwindling. I just hope that the rhetoric of attacking business calms down in the next four years of this administration. To put it bluntly, DC needs to understand that words hurt. Traders are still sensitive and would have no problem selling given the opportunity…