The Christmas gift for investors is a positive market today, particularly in Asia. The comment from China about keeping the loose monetary policy is mentioned by some to be the reason. Surely a trigger to find a reason to buy more stocks. It underlines the current positive sentiment, more than anything else.

The Chinese monetary policy is important but the US numbers we had yesterday are more important. How should we judge them ? Both personal income and spending went up but not as much as expected. Again a sign for me that the world is finding a new level of activity but not the fast rebound that is priced in the equity markets.

The housing data was more worrisome with the November new home sales that plunged 11,3%. This is actually the lowest level since March. Like I wrote in the last comment, then I watch the US housing market very closely. In total, I still only see a sort of stabilization but not the

rebound that the market is hoping for.
A positive market is of course good for many people so it is fine for Christmas. The blog is open during the Christmas holidays so I will be back tomorrow.

Peter

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