Soaring corporate revenues combined with improving economic indicators fueled a January surge in stock prices that has gotten 2011 off to a bang-up start for investors.
As the economy appears to begin expanding, U.S. investors are celebrating the best January in 14 years, according to this Wall Street Journal summary. The question is, does it presage a booming 2011 or will this stock surge fizzle in the face of global turmoil, inflation or some other threat no one sees at this point?
Either way, it’s better to start off the year with a bang than a bust. And there is solid evidence the economic recovery will continue. For instance, factory activity in the Midwest hit a 22-year high in January, the Institute for Supply Management-Chicago reported. And the U.S. Department of Commerce reported increases in personal income and consumer spending in December.
Do you believe the January surge is a sign of things to come, or are you concerned that another downturn will hit in the coming months? How are you preparing for either outcome?