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What "Global" Fear Matters to Stocks? - Real Time Insight

By: Zacks.com
Posted: 2/6/2013 9:32:00 AM
Referenced Stocks: A;B;C;D;E

The core driver of stocks in the latest rally?  -- In my opinion, a move down in the still too high Equity Risk Premium.   The S&P 500 Equity Risk Premium moved from around 6% three months ago, to about 5.3% now. 

Internals in this rally are instructive:

Since lowering fear and adding risk is the story of rising S&P 500 stocks, the question I have is this.

First, what LOWER RISK is taking stocks up the  MOST ?

(A)  A lower risk of a "Fiscal Cliff" meltdown

(B)  A lower risk of a China Hard Landing.

(C)  A lower risk of a European Financial/Debt Crisis.

(D)  A lower risk of a U.S. recession.

(E)  Other

Second, what is the most likely fear factor to REVERSE matters this year?



SPDR-DJ IND AVG (DIA): ETF Research Reports

SPDR-GOLD TRUST (GLD): ETF Research Reports

SPDR-SP 500 TR (SPY): ETF Research Reports

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