BusinessInsideer writes: So, some people are a little confused by this week's huge rally in the stock markets. After all, Europe's debt crisis isn't over and the U.S. economy has its share of problems.
This week's activity was all about Wednesday's EU leaders' summit. Ultimately, the markets were pleased. The Dow Jones Industrial Average jumped 339 points in its first trading session after the summit. However, analysts' takes on the EU leaders' proposals were mixed. And most warn there are major issues regarding the implementation of any of the agreed upon proposals. Bottom line: Europe is far from being fixed.
So, why did the stocks markets close 4% higher for the week? Here's what Michael Santoli says In the new issue of Barron's:
Sometimes, when enough folks are positioned for the world to end rapidly, the mere suggestion that it might occur gradually is enough to energize the bidders.
In other words, bad news can be good news if you are expecting worse sh#!. And stock markets are priced based on expectations of the future.
Wait, wait...there's more at http://www.businessinsider.com/barrons-explains-this-weeks-market-rally-2011-10
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