Wall Street remains hopeful that stimulus passing will boost market.
Wired PR News.com – Wall Street anticipates getting a boost from the passing of a new stimulus bill, as investors await to hear more news. As reported by the Associated Press (AP), analysts predict that the government’s passing of the stimulus plan, which Congress is still in talks over, will contribute to market gains, however, it will likely be short-term if recent market history repeats itself.
Marc Groz of the Connecticut based risk advisory firm Topos LLC is quoted in the report as stating, “You have Wall Street watching Washington and you have Washington watching Wall Street…How it plays out is very unclear.”
As noted by the AP, Timothy Geithner, White House Treasury Secretary, is set to speak Tuesday providing an outline on plans of the Obama administration for helping restore the financial health of the economy. Thomas Lee, an equity strategist of JPMorgan, is quoted as noting of the speech’s potential impact, “Whatever plan is unveiled, it will establish a framework to rehabilitate the financial system…The lack of a comprehensive plan has been an obvious source of uncertainty, keeping investors out of equities.”