Will U.S. Stocks Surge Again in Spite of the Slowing Economy?

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Will U.S. Stocks Surge Again in Spite of the Slowing Economy?
Will U.S. Stocks Surge Again in Spite of the Slowing Economy?

For those of you that follow the movement of U.S. stocks very closely will have noticed the long rally we have since in the past several trading days. This is despite some signs showing mixed data from the American economy. It is true that the consumer confidence figures came out better-than-expected on Tuesday. However, this may not be enough to prevent the Federal Reserve going ahead with additional stimulus measures at the conclusion of its 2-day policy meeting.

In the short-term, additional economic stimulus is known to boost the top equities in the U.S. However, over the longer term, the measures may actually hurt the U.S. economy. For example, in the past 5 years, the Obama administration has been very aggressive with stimulus. The problem is that these measures have not restored employment levels and economic growth to the level that we saw 10 years ago. This really is a warning sign for government officials.

If you were lucky enough to buy into stocks such as Apple or Blackberry yesterday, then the odds are that you would have profited. However, it is arguable if the bullish behavior will continue. There was mixed behavior during the Asian trading session. Much will be dependent on the economic data which the U.S. publishes later on.

On the plus side, there is a good amount of optimism creeping into the financial markets. As a result, this could provide investors with a big enough push to open long positions in U.S. stocks later. Make sure to follow the next round of Forexminute.com stock tips over the next few trading days.