The S&P 500 Breaks 1,430

The stock market is having a good day on the news of progress regarding Fiscal Cliff talks. The S&P 500 got as high as 1,434.27 which oddly exactly matched its high from November 2nd.

I’ve told investors not to worry about these silly Fiscal Cliff stories. The fundamentals of the market, for now, are very good. We may bounce around but the trend is in favor of the bulls. I still think the S&P 500 will break 1,500 within the next few months.

One small point of worry is that the Republicans and Democrats may wind up using the market as the ultimate veto. In other words, they’ll refuse to compromise long enough until the market has a big down day. Once that happens, they’ll finally be able to reach a serious deal since they can pretend that they were saving the market from the evil machinations of the other side. Bear in mind that end-of-the year 401k statements will be going out soon. No politician wants to be blamed for bad news.

The S&P 500 is still holding up well despite some negative comments from House Speaker John Boehner.

Good news for Stryker ($SYK). Goldman Sachs upgraded the stock from Neutral to Buy. The shares are up about 2% today.

Posted by on December 11th, 2012 at 12:19 pm

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