A Case of Wall Street Short Term Memory Loss…
Stocks End Up; Dow’s Best January in 14 Years
The Dow Jones Industrial Average rose 68.23 points, or 0.6 percent, to close at about 11891.93, after falling 1.4 percent on Friday. For the month, the Dow gained 314.42 points or 2.72 percent, its best January performance since 1997 and its first January gain in four years.
The market “is amazingly resilient,” Jeffrey Saut, chief market strategist at Raymond James, told CNBC.com. “After what happened on Friday you would have expected a second shoe to fall.”
But, Saut said, the markets had been due for a correction for sometime, and had been indicating one was on the way. After the sell-off, however, the market is no longer “overbought,” he said.
Saut remains bullish and one of his favored sectors are banks, which he had not bought for 10 years until last November. Since then, banks, as measured by the Financial Select SPDR Fund , have risen more than the S&P 500 on a relative basis.
“I think that is extraordinarily positive for the equity markets and the economy,” he said.
That’s right: with institutional and trader memories so short, everyone has (again) forgotten that it truly is deja vu, all over again.