Wednesday, 24 January 2018

Markets rise, “blowoff” rally to make cash holders “feel pretty stupid”

Markets rose on Tuesday.

The S&P 500 rose 0.2 percent to another record high, the STOXX Europe 600 rose 0.2 percent to its highest close since August 2015 and the Nikkei 225 jumped 1.3 percent to close above 24,000 for the first time since November 1991.

Markets rose after the US Congress passed a three-week funding measure on Monday that ended a three-day partial government shutdown.

And there could be more gains ahead.

Millenials, those born between the early 1980s and early 2000s, who had been the most reluctant demographic to buy risk assets, now appear to be ready to join the party. A survey released on Tuesday by BlackRock indicated a big jump in millennial interest in exchange-traded funds.

Bridgewater Associates founder Ray Dalio told CNBC on Tuesday that “everything is pretty good with a big jolt of stimulation coming from changes in tax laws” and predicts “a market blowoff” rally.

“If you're holding cash, you're going to feel pretty stupid,” he added.

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