Stocks Take Another Step Into Quicksand, But...
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Never let it be said the market doesn't have a knack for keeping things interesting. Yesterday it looked like the bears were going to yank the rug out from underneath stocks. Today, European Central Bank President Mario Draghi chimed in and spurred U.S. stocks higher right out of the gate. As the sage wisdom warns us, however, be careful what you ask for because you just might get it. And, given the intraday rollover, it looks like traders remembered the axiom after the initial rally had run its course.
In case you've not had a chance to look beyond the headlines today, here's the short version of the story. Although the U.S. Federal Reserve has pulled out several stops since 2008 to stimulate the economy (namely, a huge bond buyback and ultra-low interest rates), the European Central Bank hasn't been nearly as dovish. That is, it hasn't been as dovish until today.
