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January Rally Marches On
January has been spectacular, proving yet again how rapidly stocks can rise. Consider the Standard & Poor’s 500 Stock Index. Last year, over about 250 trading days, it managed a return of just 2%. So far this year, there have been a mere 13 trading days, and the S&P 500 has risen almost 5%.
There’s a lot of time left in 2012 and threats to the rally are many. Corporate profit reports have been okay, but there are signs that sales revenues are not growing enough to support ever-rising profits. Should the trend continue, stock prices could suffer. (January 23)
