Stocks continued to rise on Tuesday after an encouraging report on home prices and an unexpected jump in consumer confidence. The Treasury auctioned off $42 billion in 2-year notes today, and it was met with mediocre demand. Additionally, President Obama officially reappointed Ben Bernanke for another term as Federal Reserve chairman. Bernanke's next challenge will be presiding over the recovery, economists said. Watch and listen to what the pros had to say...
Equities a Good Opportunity Until Year-End
David Costa, dean at Robert Kennedy College, sees good opportunities in equities until the end of the year. “One interesting opportunity is in luxury goods,” he said. “That’s one of the few markets, where to build a brand, you need a century, not a few years…Outside the United States, some luxury goods producers have reported some interesting results.”
Markets to 'Tumble to Earth on Bad News'
"Good news" is what’s fueling the market rally, said Alan Capper from Pinner Park Investments. "I always get worried when a market behaves like that because that doesn't suggest that it has its own momentum—it needs that fix," he said. He sees the market "tumbling to earth on some bad news" sometime in September or October.
US to be Hit by Foreclosure ‘Tsunami’
A “tsunami of home foreclosures”is set to hit the U.S. as banks are unable to keep bailing out tenants that can’t afford their rent, said David Karsbol from Saxo Bank. “A lot of homes have been held back because if the banks are foreclosing on them, they will have to do a writedown on the mortgages they have on their balance [sheets],” he said.