Markets are going through another round of ' is it safe?' as action has moved from steep break to sharp rally. European accommodations trying to avoid any chances for a systemic failure along with Fed and Treasury positive pronouncements of their own have helped the upside. Equity inflows have increased again as managers execute requests for more stock. Obama jobs initiative verbage, fat corporate cash reserves, and low values to alternative investments make the path of least resistance to the upside as long as markets are constantly reassured by governments of their willingness to be vigilant in arriving at a debt solution.
If all efforts allow world economies to limp to the next year, it is likely stocks will lead all returns as commodities and fixed income become less desirable. But stocks have to make it through the Fall first.
