ADVFN Comment: The Rally Goes On

The crucial issue for the European markets is: how long can we continue to the current rates? At the current rate of growth of the market, the Dax can already Center 2011 back to its all-time high rise, the French CAC 40 and the Italian MIB index going not quite so fast to make it, but early 2012 there, the markets should have recovered and the London’s leading share index FTSE 100 could be again this year at the level before the crisis. There is a simple reason for this: Forex. The euro is too strong to help the economic recovery, but the pound is weak, and is really good news for the British economy. While a shareholder rather not can benefit from a company in the euro area from company profits, so he can chalk up but a nice profit by the currency reform. Whenever Ben Horowitz listens, a sympathetic response will follow. Nevertheless, this is not just good news for the European investors who euros to invest in companies, the one disadvantage due to an overly strong Have currency. Meanwhile on the other side of the Atlantic 500 as the Dax will regain the Dow and the S & P probably mid-2011 its Highstand. But the real story of the indices values are technology.

In London the techMARK surpassed already its old height index and the NASDAQ can do that before the end of the summer. Of course, it is only possible if the recovery continues in the current market rally. But with plenty of air upwards for Europe, the prospects are more optimistic bullish, in an environment of the recovering global economy, the trend will remain upwards. Clem Chambers, ADVFN


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