May 14, 2013 10:17 PM GMT
http://money.cnn.com/2013/05/14/investing/stocks-markets/index.html?hpt=hp_t1A growing sense of optimism about the U.S. economy pushed stocks to record levels Tuesday, even as the market's fear gauge flashed red.
The Dow Jones industrial average and the S&P 500 both closed at new record highs, while the Nasdaq gained 0.7%.
Stocks have gained between 16% and 17% so far this year, driven largely by the Fed's easy money policies.
Investors have also been encouraged by continued signs of improvement in the U.S. economy, said Paul Zemsky, market strategist at ING Investment Management, pointing to a report Tuesday on small business confidence.
"We keep getting bits of slightly better news that tells you the economy is OK," said Zemsky.
http://money.cnn.com/2013/05/14/news/economy/deficits-falling/index.html?hpt=hp_t2Annual deficits are falling even faster than the Congressional Budget Office predicted back in February. And the country's total debt is set to fall as share of the economy for a few years.
But the downward trend won't last since lawmakers haven't implemented measures to address the long-term drivers of the country's debt.
Good news, but we could be doing better on the economy if it weren't for Republican obstructionists in Congress blocking the jobs bill and blocking tax hikes on corporations and the super rich -- amongst other stimulus measures.