Stock Markets First Positive Week Closing Signifies a New Beginning

For the first time this year, the stock market week ended on a positive. Experts attribute this to the recovery the oil industry from multilayer lows that it had sunk to since August last year. It was also noted that hopes of reciprocated stimulus overseas boosted this trading. By the end of the week, oil prices had settled at $32.19 and increase by over 9 percent, the biggest increase since August last year.

This positive ending was replicated in almost all the major markets in the country including Dow Jones that closed 210 points higher with Apple and Goldman Sachs contributing to its gains. The prospects that apple’s stock could jump 50 percent on the presumption that it launches iPhone 7 later in the year augured well for Dow Jones. Nevertheless, the reports could have been better were it not for the 12.1 percent dip of the American Express.
Experts also allude to the strength of the dollar as one of the pillars on which weak stocks relied on as guard against further deterioration. The announcements by the European Central Bank and the Bank of Japan about the implementation of qualitative easing measures came as a significant boost in the Asian stocks. For instance, the Nikkei 225 posted an overnight 5.88 percent increase while the Shanghai Composite closed the week on an almost similar high note recording a 1.25 percent increase.
Various experts have come up trying to explain this unusual trend and what traders should expect going forward. One of the most vocal comments of the week was one made by Joe Sowin stating that the week’s rally was primarily due to short covering. Joe is the head of global equity trading at the Highland Capital Management.
Highland Capital is an American hedge fund founded more than two decades ago by James “Jim” Dondero and his co-partner Mark Okada. James has been steering the fund with its headquarters in Dallas Texas and helped it diversify its operations and open up branches in Latin American cities including Sao Paulo and Seoul. Jim is the President and portfolio manager of the firm.
Jim has over 30 years of experience in fund and investments management both independently at his firm and in the private sector. Before partnering in starting Highland Capital, James had worked with protective GIC life insurance American subsidiary as well as American Express insurance. Today apart from his leadership role at the Highland capital, Jim also sits on other boards such as the Cornerstone Healthcare. Watch Jim and his team ring the NYSE Closing Bell below.
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