Stock Market Progression Signals Recovery

Great gains move on to more stable investments

The New York Stock Exchange is the barometer that most people go by to gauge the health of the economy. The NYSE also served as the barometer for the recovery of the economy. Beginning last March, the recovery began in earnest according to the numbers on the big board. Investors started feeling more confident and began buying bargain stocks from the financial sectors. The rush for bargains marked the early portion of the recovery. Now, the bargain hunt seems to be over and investors are buying more stocks from across the board. Analysts interpret this progression from bargain hunting in the financial sector to acquisitions across the exchange as indicating a maturity in the recovery process. The overall economy seems to be on a legitimate and sustainable track for long term health.

Standard & Poor's 500 Index leads the way

The bull market's coming of age story can be followed by looking at the Standard and Poor's 500 Index's performance since last March. The S&P 500 is up 69 percent since then. Those gains are even more impressive because the S&P 500 includes stocks in the financial sector and small cap funds which were hit hardest during the recession. In fact, the financial sector outpaced the overall index performance by double. Investors have migrated out of the financials and into health, telecommunications, large cap funds, and utilities. This indicates that investors believe that all the major gains in the financial sector have been seized, and they are moving on to greener pastures. The bull market is officially off and running. … click here to read the rest of the article titled “Stock Market Progression Signals Recovery“