When it comes to stagnating growth in some of the world’s largest economies, you have three choices when policy experimentation doesn’t provide results: 1) You can take your medicine for all the bad economic policy over the years and allow the economy to heal naturally (albeit in an ugly fashion in the short term); 2) you can introduce badly needed structural reforms to your system in order address the underlying problems that caused the need for that bad monetary policy in the first place; or, 3) you can ignore all the warnings and just “Keep Printing More Money!”
Take a guess at what China is most likely to do?
The expectation of even more financial stimulus had the markets ticking higher today, until earnings worries settled in. The early morning uptick proves that so long as the music is playing, central bankers will dance and keep papering over their economic problems.
It’s great for markets in the short term… but without reform, this will end poorly.
Here’s what else you need to know about the markets on Monday, April 11, 2016.
First up, check out the results for the Dow Jones, S&P 500, and Nasdaq:
Dow Jones: 17,556.41; -20.55; -0.12%
S&P 500: 2,041.99; -5.61; -0.27%
Nasdaq: 4,833.40; -17.29; -0.36%
Now, here’s the top stock market news today…
DJIA Today: Yahoo! Deal Update, Rising Oil Prices, Teetering Bear Rally
Let’s kick off with deal news. Rumors about a Yahoo! Inc. (Nasdaq: YHOO) deal continue to suck up all the oxygen from the conversation. The Wall Street Journal reports the Daily Mail & General Trust Plc. is working with private-equity firms to discuss a deal for the Internet company. Yahoo announced it has extended its first deadline to April 18 for auction bidders, which also include Verizon Communications Inc. (NYSE: VZ), CBS Corp. (NYSE: CBS), and IAC/InterActiveCorp (Nasdaq: IAC).
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