Source: USA Today | Date: March 28, 2013
NEW YORK -- The U.S. stock market sprinted to record highs and double-digit gains in the first three months of 2013, but investors expecting stocks to keep climbing at such a dizzying pace are likely to be disappointed, Wall Street strategists say.
The quarterly gains were so sizable and so front-end loaded, that they would represent a great full-year return for even the best money managers. In the first three months of 2013, the Dow Jones industrials charged ahead 11.3%, the benchmark Standard & Poor's 500 rallied 10.0%, and the Nasdaq composite rose 8.2%.
Optimists view the fresh all-time highs, including the S&P 500 topping its October 2007 peak on Thursday and notching a record close of 1569.19, as a sign that things are getting better in the economy and people are feeling better about their finances as rising stock and home prices make them feel wealthier.
Bulls started their stock-buying binge after the U.S. avoided a fiscal crisis at the start of the year. Buyers also grew more confident after Ben Bernanke, the nation's chief central banker, reiterated earlier this month that the Federal Reserve's market-friendly "easy money" policies will continue. In the final week of the quarter, stocks enjoyed a relief rally after the tiny Mediterranean island of Cyprus was able to secure a bailout from eurozone finance leaders and avoid a default, which reduced contagion fears.
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