Tracey Ryniec here, filling in for Steve
With most global investors believing a deal with Greece will get done at some point, investors pushed the NASDAQ and the Russell 2000 to new all–time highs to start the week.
For those who thought this summer might be a boring one for investors, it’s turned into anything but that as investors have sought out risk. You can see a sign of that risk taking in the biotech industry. The largest biotech ETF, the IBB, hit yet another record high today. Weeks ago, the pundits left it for dead saying the biotech rally was over, but the IBB is now up 26.3% on the year.
The volatile Chinese stock market, which fell over 13% last week, is one area to watch. Investors didn’t have to worry about it Monday as China’s stock market was closed for a holiday.
Investors are putting more emphasis on Greece than China though. It remains to be seen if that strategy is the correct one.
Either way, the bulls have woken up this summer and are charging. This could be one summer where “sell in May and go away” was the wrong advice to follow. For now, I’m following the momentum and that momentum is bullish.
Stock Strategist at Zacks Investment Research , Zacks Investment Research