Global Stockmarket Recovery

Global Stockmarkets have climbed steadily for the past few days and yesterday, Wall Street rose significantly by 1.3%, following US Central Bank's decision to keep interest rates unchanged amidst a potential weakening economy. On the other hand, US Federal Reserve remained concerned about inflation, but appeared to have removed language about additional rate increases in its post-meeting statement. In fact, some analyst found "light at the end of tunnel" in a sense they found Fed's statement may even suggest that there may be an interest rate cut by as early as middle of this year and they appear less than concern about the economy! This certainly augurs well for the long term direction of the stockmarket.

From my observations, reading into Federal Reserve's messages is almost like interpreting the Bible...different people may interpret the words differently. So some analysts see positiveness while others may see more negativity! So judge by yourself and let's not be too carried away too soon. I would prefer to wait for more reinforcing fundamentals or signals before declaring that the market turbulence is truly over. Thereagain, if it (the turbulence) does not happen, i won't be the one to complaint either! Happy Investing!