What is causing such a market increase,
I'm no expert but this is my perspective:
1. Most big businesses have been profitable because they are running lean; layoffs have actually forced them to operate more efficiently obviously with reduced payroll. Basically they have gotten rid of most of the dead weight which of course has contributed to the high unemployment numbers. They are also operating with more part-time employees and contractors to avoid having to pay benefits.
2. As bad as things seem in the U.S. in terms of unemployment, fed deficit and rising costs, things are more fricked up in the rest of the world which still leaves the U.S. as one of the best bets for investment. Also, the financial/housing debacle created a lot of cheaper properties and foreign investors have taken notice.
3. The housing market is finally come out of the doldrums. Ongoing low interest rates have made investment in cheaper homes attractive, thus home prices are starting to go back up. Most of the foreclosures associated with the housing bubble/financial collapse have happened and been resolved one way or another. Thus....
4. The financial markets have finally stabilized. Buyers with decent credit are able to get home loans more easily.
IMHO the improvements we are seeing are in spite of negative Obama administration policies including Obamacare, excessive regulation in Dodd/Frank, general bad-mouthing of the rich and greedy corporations, stupid energy policy that encourages failed alternative energy development and wasteful, ineffective pork-barrel spending in general that has done little to stimulate the economy while creating a huge deficit. In other words the typically robust U.S. economy has performed it's cyclic rebound but took much longer this time due to dumbass Obama/Dem policies.
This post was edited on 2/1 at 11:29 am