The risk switch remains in the on position

The risk switch remains in the on position as growth-sensitive assets attempt to keep the rally going following last week’s better than expected jobs numbers in the U.S. and comments from the ECB regarding a regional bond buying program. Germany’s support for the ECB’s purchase of Spanish and Italian bonds -in hopes of bringing bond yields to a more reasonable level- has given investors a renewed sense of optimism that a collapse of  the peripheral economies can be avoided. Thursday’s reporting of key economic data from the world’s #2 economy, China, will play an important role in determining if the party continues or whether fears of further global economic malaise seep back into the investor psyche. Have a great day!