Equity Market Rally Continues

Risk assets advanced yet again last week as 2012 has gotten off to a strong start for the markets. Last week, investors looked past some mixed earnings results and focused on improvements in economic data, helping stocks to notch some solid gains. For the week, the Dow Jones Industrial Average climbed 2.4% to 12,720, the S&P 500 Index rose 2.0% to 1,315 and the Nasdaq Composite gained 2.8% to 2,786.  The improvements in equity markets in the early weeks of 2012 are particularly notable given that stock market gains have been global in nature. In fact, the past three weeks mark the first time since 2007 that markets in the United States, Europe and China have all advanced at the beginning of a year.