The Week That Was
Friday November 18, 2011
The markets ended a Euro-scare driven week by finishing essentially flat for the day. The Dow was up 0.2%, the Nasdaq was down 0.6%, and the broader market index, the S&P 500 was down 0.04%. The bond markets and commodities markets were similarly flat. Lacking strong drivers in either direction, the markets continue to trade within the same range they’ve been in for the bulk of the year. Much like the markets, our outlook is bifurcated and middling. We continue to be mildly positive on the US, and mildly negative on Europe.
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Our Take on the European Deal
Thursday October 27, 2011
The expected relief rally occurred worldwide following the announcement out of Europe that some agreements had been reached on a Euro-zone rescue package. As with anything of this magnitude and scope, the devil is in both the details and the implementation. The good news here is that European politicians have shown that are willing to act aggressively and make tough decisions when pushed hard. While we believe that the package as currently outlined is not enough to put paid to the European crisis, it does seem to show that the politicians will have the fortitude to act again when necessary.
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The Week That Was
Friday October 21, 2011
Today the markets were up broadly on a spate of good news. The Dow closed up 2.3%, the Nasdaq closed up 1.5%, and the S&P 500 closed up 1.8%. Generally, the markets were reacting to all of the positive corporate earnings and outlook news. However, there was also further good news relating to unemployment and the war in Iraq. The number of states in which the unemployment rate fell increased, and President Obama announced an almost complete drawdown of US troops in Iraq by the end of the year.
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The Week That Was
Friday September 30, 2011
The equity markets finished off the third quarter with a whimper. The Dow was down 2.2%, the S&P 500 was down 2.5%, and the Nasdaq was down 2.6% today. This was the worst quarter of equity market performance in quite some time. For the quarter, the Dow was down 12%, the S&P 500 was down 14%, and the Nasdaq was down 13%. The day started out promisingly, but slowly declined following announcements on US consumer spending and European inflation.
All of this, of course, adds to the curtain of gloom that seems to be descending on us.
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The Week That Was
Friday September 23, 2011
Yesterday the Dow Jones Industrial Average capped off its worst week since the one ended October 10, 2008, with a weekly decline of 6.8%. The other two major indices did not fare much better, with the S&P 500 down 6.5% for the week, and the Nasdaq registering a weekly decline of 5.3%. The markets were giving a mediocre performance until 2:30pm on Wednesday when the Fed FOMC meeting announcement was made and digested. It seems the pessimistic language of the Fed’s announcement was all the catalyst needed to induce a sell-off.
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