Article Analysis

Analysts and investors alike have seen the recent boom in stocks this January – trading has picked up and the markets are running positively with growth and a prosperous outlook (at least for now). The article focuses in on the current DJIA along with a few of the current markets around the world illustrating the positive growth in stocks.

The current DJIA has gained 68.23 points or 0.6% and an overall gain for the month for the blue-chip’s have now entered their strongest year since 1997 as well as their first positive January in four years. This is a peak since there have been clouds in the financial industry and the crisis has deeply affected companies’ progression and stocks have been quite a risky area for investors. There has been controversy around the world regarding the oil prices and this has been greatly due to the current situation in in Egypt, along with the current crisis various European countries has induced a great amount of global volatility.

Consumer confidence and investor confidence seem to be the cause of the current boost in the DJIA due to the positive revenue levels rising. Alongside the value of gold decreasing, showing us that investors have decided that stocks are a valuable investment. However this predicted to surge as commodity prices are due to rise and consecutively the operating margins will be lowered for companies as costs will rise.

This overall increase in investment within the DJIA is a definite positive start but it is not a continuous one as the current future relating to economic growth looks grim. The markets have shown time and time again that a collapse is easily possible but short-term investors currently looking to make a couple of quick bucks off day-trading or short-term investment in stock will be having sunny days.