What: Overnight on Wall Street stocks surged to a new record closing high. At the final bell the Dow Jones was sitting at 17,068.26, a gain of 0.54% for the session and 14.5% for the year.
So what: The rally in U.S. stocks came after the release of positive economic data including news that the economy added 288,000 jobs in June. It was a strong number and well above expectations and suggests the recovery in the US is gaining speed.
Despite the US being the epicentre of the global financial crisis (GFC), somewhat ironically the Dow Jones has soared over 100% in the past five years while the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) has rallied just 43% and is still over 1,000 points below its previous 2007 high!
Now what: While a rally back towards the 7,000 level may be some way off for the S&P/ASX 200 Index, the 6,000 point level in the near term could certainly be achieved given the spectre of low interest rates globally are continuing to drive equity markets higher and sustain the current bull market.
Investors positioning their portfolios to benefit from this thematic should look to businesses such as the ASX Ltd (ASX: ASX), Macquarie Group Ltd (ASX: MQG) and Computershare Limited (ASX: CPU) – these businesses are all highly leveraged to equity volumes and capital market activity and stand to benefit if markets continue their upward momentum.
