* S&P 500 and AUDUSD On Pace for their Best Month on Recent Record * Perceived Global Risk Drops Markedly after the EU Cobbles together Plan * Growth and Rate Outlook a Offers Little Hope of a Sustained Rally in Capital Markets
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Written by: John Kicklighter, Senior Currency Strategist
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S&P 500 and AUDUSD On Pace for their Best Month on Recent Record |
There was a remarkable surge in underlying investor sentiment and the capital markets this past week. In fact, this is merely the punctuation mark on a strong performance through the entire month of October. However, this surge (the best performance from the benchmark S&P 500 in over four decades and a post-float record for the yield intensive AUDUSD) flies in the face of heavy fundamentals winds. At the very foundation of the market's performance, we are dealing with risk versus reward. There have been a few steps taken towards relieving immediate threats to financial stability; but they are far from a permanent foundation for confidence. And, drawing less attention is the return side of this balance. Reward is founded in economic growth, market expansion and rising yields. None of these components are currently improving...
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