Federal Stimulus Should Keep Stock Market Bulls Happy

Stocks rose fitfully last week in a typically strange, exciting, exasperating options-expiration week. The Dow Jones Industrial Average , Standard & Poor's 500 Index and the Nasdaq Composite Index all ended roughly 1% higher, while the Russell 2000 small-caps rose 1.5% Treasurys enjoyed their firmest session of the past month in part due to an unexpected rise in unemployment claims. Bonds love misery because it suggests that inflation -- their arch enemy -- will remain under control. Inflation will be a problem as long as home prices retreat, jobs are scarce and wage hikes are a far-off dream. But most importantly: U.S. President Barack Obama's new fiscal 2012 budget was sent to Congress. Here's my quick take: Expect more deficits, and false promises to erase them. To find out more about how federal stimulus will affect the stock market read on...
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