The "Goldilocks-like" market

Broad Market Gains Power Historic Rally - Stock, Bond, Commodity Indexes Rise in Unison for First Time Since 1993; Some See Clouds Forming

From stocks to bonds to commodities, world financial markets have rallied in unison during the first half of 2014, a feat not seen in more than 20 years and a reflection of investors' optimism that central-bank policies will boost growth. Six closely tracked gauges of world stock, bond and commodity performance are headed for gains in the first six months of the year, the first time they have done so since 1993. The Dow Jones Industrial Average is up 1.7% for the year, putting it on pace for its fourth-straight first-half rise.

.... "We are in a Goldilocks-like age at the moment,'' said asset manager Jack Flaherty, referring to markets perceived as not too hot and not too cold—just right. Mr. Flaherty is head of U.S. fixed income at GAM, which has over $120 billion in global assets under management, At the same time, the price gains and decline in trading volume and drop in volatility have made many investors and analysts nervous.
Comment: Image source: "Jessie Willcox Smith – “Goldilocks and the Three Bears”, Swift’s Premium Soap Products calendar illustration, 1916." My take .... she is running from three bears: Inflation, National Debt Crisis, and Global Uncertainty (eg Rise of ISIS)! Interesting thing about Goldilocks (the story): ""The Story of the Three Bears" experienced two significant changes during its early publication history. Southey's intrusive old woman became an intrusive little girl in 1849, who was given various names referring to her hair until Goldilocks was settled upon in the early 20th century. Southey's three bachelor bears evolved into Father, Mother, and Baby Bear over the course of several years. What was originally a fearsome oral tale became a cozy family story with only a hint of menace."

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