Optimism Overseas

After a two week sell off in the stock market, investors are ready to move more cash from the sidelines and take advantage of an anticipated upward move in the markets following the Reserve Bank of Australia's decision to raise interest rates last night. This seems to be a positive sign that the long financial crisis is ending and optimism in the future is not unfounded. We'll see how long this view lasts as companies begin to prepare their 3rd quarter earnings reports and release them to the public. Here in the U.S., investors are still reacting to extremely low interest rates available for CD's, as many banks here continue to lower their rates, not raise them. This fact forces many people looking for income to take longer maturities or higher risk investments to get the yield they need.