“Investors are trying to decide whether they should surrender to attractive valuations and buy into a market that may be propelled by the President’s jobs speech and the prospect of additional quantitative easing, or, if by doing so, they would only be responding to a siren call as the U.S. ultimately heads into recession on the heels of a renewed price decline,” Standard & Poor’s said in a note.
“Despite a 12-month target for the S&P 500 that projects a price advance of nearly 17%, S&P believes that near-term risks remain elevated and advises a cautious stance, since President Obama’s job proposals may not go far enough to jumpstart a half-speed economy, combined with the reluctance of members of the House to approve proposals that would increase the deficit,” the report said.
SPDR Dow Jones Industrial Average
