New data, less worries? Apparently, the market may be more resilient than what most Wall Street executives have come to believe. Recent data on the labour market, transports sector and rise of the S&P 500 over the past few weeks could be indicators that that forecasted drop in the markets isn't going to be so dramatic. It will be interesting to see if company valuations will still go back to "normal numbers" as investors have anticipated due to the fears of market drops.
Jim Paulsen, chief investment strategist at Wells Capital Management, said sunnier economic data are “filtering through the financial markets”, adding he reckons that “for a little period here we may get better economic reports”. Citigroup’s economic surprise index, which tracks the performance of indicators compared with consensus forecasts, has risen to its highest level since November, a sign that expectations may have become too pessimistic.