Bullish investors have emerged from their sleep in 2018. Cash returns to the most risky corners of the market.
"The market oversold huge in December," said David Kelly, chief global strategist at JPMorgan Funds. "The things that fell the most were those that are likely to increase the most."
Fed green light The Fed's rapid reversal from hawkish to extremely gloomy has served as a green light for investors. The risk store is left on, at least for now.
) 19659012] "Fear of a credit event" in December "caused Fed surrender", Michael Hartnett, chief investment strategist at Bank of America Merrill Lynch, wrote to clients at Friday. "It worked."
"We've seen quite a dramatic shift in Fed's monetary policy outlook over the past two months," Kelly said.
But some believe Wall Street's euphoria over the Fed policy is misplaced.
"People have to ask themselves: Why does the Fed stop?" said Peter Boockvar, investment manager at Bleakley Advisory Group. "It's not because they met their goals, that's because the data and markets have frightened them."
If Fed's fears are going to be fulfilled, it can be a serious downturn. That would be bad for stocks. If the Fed is too cautious, it may have to aggressively increase interest rates to capture inflation.
"Anyway, I wonder how much more up there is for stocks," Boockvar said.
"People don't pay enough attention to the possibility that this extension could continue for quite a few years," he said.
2. Sears fate: This week can determine if Sears survives. A US bankruptcy court will hold a Monday hearing on the Sears' plan to sell its assets to its manager, Eddie Lampert, who wants to obtain the 133-year-old company in business.
The hearing will probably unfold during the week. Sears hopes to have a decision approving the sale by Friday.
4. Goo gle does not fall: In the last three months of 2018, the gas group's grills at Congress were protected data security, its employees around the world went beyond sexual harassment scandals and revealed a security issue that affects the largely forgotten social network, Google Plus.
5. Gene ral Motors reports revenue : General Motors will report financial results Wednesday. It is the company's first quarterly report since it announced plans to cut 8,000 profitable staff and close five factories in North America.
Analysts assume lower earnings for the quarter and year. But the downsides are not an answer to financial distress. Instead, GM says it will trim costs and release funds to invest in electric and self-propelled cars. Analysts will be looking for more details on investment plans when results are released.
6. Coming this week:
( ] and Dunkin Brands ] ) ) Phillips 66 (19459008) PSX ) report revenue)  Mattel