The markets and exchange traded funds (ETFs) are up modestly after Congress agreed to a tax extension that many hope will be the saving grace of the economic recovery.
- The Bush-era tax cuts will be extended for both the wealthy and the middle class. The breaks will put cash in America’s pockets and, it’s hoped, encourage them to spend the extra money, Reuters reports. Rydex Equal Weight Consumer Discretionary (NYSEArca: RCD) is up 1.2% so far this morning.
- Ireland has an austerity budget coming up for a vote in parliament today, ending a selloff in the euro. The measures are welcome ones, but they won’t put an end to all eurozone fears, says The Wall Street Journal. The budget calls for a combination of spending cuts and higher taxes. iShares MSCI Ireland (NYSEArca: EIRL) has turned flat this morning, apparently saving big moves for after the vote.
- Base metals are surging this morning, aided by a weaker dollar and Fed Chairman Ben Bernanke’s comments over the weekend, says Dow Jones Newswires. Copper is closing in on a record, initially set on July 2, 2008. Global X Copper Miners (NYSEArca: COPX) is up nearly 3% so far.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.