Since the economy of the United State rock bottomed in December, it has been rising with enough momentum to sustain, as there is a decrease in the global growth rate. This was cited by a top a strategist from JP Morgan, Marko Kolanovic. This strategist had previously moved the entire market with his predictions, along with shift in the credit policy of the Federal Reserve. He had also been involved in the negotiations taking place between China and US to stabilize the trade market. Investors find it more comfortable bearing risk when the market is low and down by almost 10 %, as mentioned by a quantitative strategist in the Federal Reserve.
The figures have been strong for January and March and according to analysts this may hold up in the long run, although there may be a significant reduction on a day to day basis. This may occur due to the low positioning policies. The Bank has target prices of 3,000, which it plans to charge for S&P 500, the figure of which is almost 18 % higher than the last Christmas. The Wednesday close was 8 % lower than the target. The Index still remains in the territory of correction, adding almost 5 points to finish its third affirmative session in a row.
Minutes released from the Fed suggested a warning against the down risk of a sharper slowdown in the economic growth of the world, mostly in China and the European nations. This may result in tightening of the fiscal policies. Yet, they also hinted that they might resort to reducing the figures in the balance sheet. The slowdown of the economy is preexistent, but is lower that the global rate which makes the U.S strong enough to hold the cycle and continue this way for a few more cycles.