We’ve been saying for some time now how undervalued some NOT all big blue chip stocks are based on ultra-low interest rate assumptions.
Investors head for ‘big cap’ America
By Michael Mackenzie and Arash Massoudi in New York
Euro crisis, Spanish bailout, America’s sputtering recovery and the threat of a hard landing in China. You name it, Wall Street has weathered it. The unexpected twist of the summer is the resilience of the US stock market.
After big losses in May and early June, New York’s benchmark S&P 500 index appeared primed for a repeat of last summer’s tumble. A weakening domestic economy and Spain’s efforts to avoid a full international bailout, requesting aid for its banks, made for a worrying backdrop.