The LeBron Rally: Will It Continue?

Nobody could come up with a good reason for the S&P 500's three-day rally, so let's call it the LeBron James rally. (The buzz/hope in New York is that tonight's announcement from Greenwich, CT meant the "The King" would be coming to play for the pathetic Knicks. I'm guessing he may have been in tony Greenwich to check on his hedge fund performance.)

LeBron or not, yesterday stocks enjoyed the first broad rally of the quarter, with US indexes posting their biggest point an percentage gains since May 27^th and the third largest gains this year and with today's gains, the S&P 500 just completed its first three-day rally since April. Remember April? That was the last time you felt like checking your 401 (k) account!

Here's my two cents: (1) I don't think we're going to get a double-dip and (2) markets rarely tumble when lots of people warn that the investment world as we know it is about to end. Your job is to watch your downside when optimism abounds. For now, enjoy the rally and the LeBron Show!

Jill Schlesinger

Jill Schlesinger, CFP® is the Emmy-nominated business analyst for CBS News. She covers the economy, markets, investing and anything else with a dollar sign on TV, radio (including her nationally syndicated radio show), the web and her blog, "Jill on Money." Prior to her second career at CBS, Jill spent 14 years as the co-owner and chief investment officer for an independent investment advisory firm. She began her career as a self-employed options trader on the Commodities Exchange of New York, following her graduation from Brown University.

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