The Standard & Poor’s 500 Index is heading toward an important threshold as it closes a few points shy of doubling its intraday low of 666.79 in March 2009.
The U.S. stock market has recovered more quickly than most analysts predicted during the dark days of early 2009, a result of massive government stimulus, many believe.
While bailouts and stimulus funds may have speeded the recovery, the market’s remarkable rally provides further evidence that the U.S. economy remains resilient in the face of economic downturns. Once again stock values have recovered from large losses, underpinning the long-term investment philosophy that most advisors recommend to their clients.
In the meantime, two Federal Reserve Bank presidents warned that the Fed would risk an inflationary spiral if it continues to pump money into the economy, saying they will oppose further easing.