Last week, the Standard & Poor’s 500 Index set a new record, closing above 3,000 for the first time. Other major U.S. stock indices also finished at record highs, reported Barron’s.
Company fundamentals, investor sentiment, and geopolitics all have the power to push stock prices higher. However, according to Financial Times, last week’s gains were attributed to Federal Reserve Chair Jerome Powell’s testimony before Congress and the expectation the Federal Reserve will lower the Fed funds rates in July.
Investors were encouraged by the possibility of monetary easing. Yardeni Research charted data showing the Investors Intelligence bull/bear ratio rose to 3.1 on July 9. It was 2.94 on June 25 and 3.05 on July 2, which indicates bullishness has been increasing.
An Investors Intelligence bull/bear ratio greater than 1 typically indicates high levels of bullishness, while a bull/bear ratio of less than 1 typically indicates high levels of bearishness. The ratio generally is considered a contrarian indicator, explained Investing Answers.
Year-to-date, the Standard & Poor’s 500 Index is up 20.2 percent.
Finally, to all except the most hard-core techies, “the cloud” is some mysterious place that stores all of your data, photos, music, and applications — all online and often for free. For businesses, “the cloud” has become the go-to place for new software development and application deployment (known in the business world as “IaaS” — Infrastructure as a Service). But where exactly is this “cloud,” and who owns it? The answer is, to a large degree, Amazon — much more than the company that will sell you anything and deliver it tomorrow. Amazon Web Services (AWS) is far and away the most dominant provider of cloud services, with a market share of over 41% — greater than the next four competitors combined.
In brief, what’s the future of the cloud? As Marcus Vlahovic, Founder & CEO of Sustainabody says: “Cloud computing is bridging us to a world of unlimited connectivity. In 10-15 years people won’t be talking about routers and individual networks, everything will be the network.”
As you can imagine, the future of cloud services will emerge and permeate throughout all phases of our lives and how we store and access information.
Investors take note.