Stock Market Boom 2011

A credit boom-bust cycle is an episode characterized by a sustained increase in several economics indicators followed by a sharp and rapid contraction. Commonly the boom is driven by a rapid expansion of credit to the private sector accompanied with rising prices of commodities and stock market index.Here share tips suggest that in stock market boom 2011 phase, asset prices collapse and a credit crunch arises, where access to financing opportunities are sharply reduced below levels observed during normal times. The unwinding of the bust phase brings a considerably large reduction in investment.

All the while, the shares became more and more fashionable. Investors, oblivious to the lack of actual profit being made by the company, fell foul to company rumor-mongering that claimed of overseas success.The period between World War II and the late 1960s was one of high productivity and low inflation, which gave a boost to stock prices. US equities generated a compound average annual return of 14% from 1946 to 1968. During those years, inflation was about 3% on average and equities performed 11% per year above inflation. Yes, economists are rosy on 2011. Finding an economist who doesn't expect the S&P 500 to rise again in calendar year 2011 is like trying to find a business executive who thinks President Obama is the best friend of corporations. We believe that the US economy is today in another high- productivity, low-inflation environment.The economic data that came in toward the end of 2010 was no doubt encouraging, and the improving trend is expected  in stock market boom 2011.

Stock Market Boom 2011