It Could Be a Happy New Year for Stocks
The blue-chip Dow Jones Industrial Average is up a bit more than 10% for the year-to-date and, at nearly 11,500, is trading at a level last seen in early September 2008.
The broader S&P 500 ($INX) has gained 11.6% in 2010 and also stands at a 29-month high. Most impressive, the tech-heavy Nasdaq Composite ($COMPX) is up a robust 16.5% so far in 2010 to put it just shy of a three-year high. After a quiet December, Greco expects the rally to take off again in earnest.
Naturally, more money in people's pockets is good for the economy, corporations and ultimately stocks. Furthermore, companies are staring to deploy their cash hoards on mergers and acquisitions, dividends and share buybacks, all of which are good for stocks, says Greco. And lest we forget, the Fed is determined to keep pumping liquidity into the financial system.
For more on Greco's outlook from the floor of the New York Stock Exchange (NYX), see the video above.