Slowly But Surely – Economic Recovery
Slowly but Surely Weekly Update – February 6, 2012 As investors increasingly put aside fears of economic calamity and focused again on fundamentals, the Dow Jones Industrial Average broke through to its highest close since May 2008, back before the Lehman Brothers collapse and ensuing economic meltdown. The combination of strong job growth, a three-year low in unemployment, and other positive developments, propelled the Dow ahead 156.82 points, or 1.23%, on Friday. At this point, the blue-chip index would have to rise just 10% to reach its record close of 14164.53, hit Oct. 9, 2007.[i] The...
read moreEyes on the U.S. Economy
Eyes on the U.S. Economy Weekly Update – January 30, 2012 With only a couple trading days left in January, stocks are positioned to lock in four straight months of gains and finish with their best performance since 1997.[i] Unfortunately, some momentum was lost last week after the government said the U.S. economy expanded at a slower-than-expected pace in the fourth quarter. For the week, the Dow Jones Industrial Average fell 0.5%, while the S&P 500 and Nasdaq notched modest gains.[ii] Because the figures reported by the Commerce Department were lower than expected and stocks pulled...
read moreThe January Effect
The January Effect Weekly Update – January 23, 2012 There’s an old adage you may have heard recently which says: “As goes January, so goes the year.” What is this January barometer all about? According to the Stock Traders Almanac, the month of January tends to predict the direction of the market with an 88.5% accuracy ratio, with only seven major errors recorded since 1950.[i] Those aren’t bad numbers. What causes the “January effect”? Most sources attribute it to a calendar-related anomaly in the financial markets where security prices increase in the month of January because...
read moreI Have to Mention It – European Debt Crisis
I Have to Mention It – European Debt Crisis Weekly Update – January 16, 2012 I know you’re probably tired of hearing about the European debt crisis, and frankly don’t blame you. At risk of sounding insensitive to the struggles of our European neighbors, we’re tired of it too. While there are benefits to globalization, there are also drawbacks as evidenced by the unprecedented level of negative influenceEurope’s financial issues have had on us in recent years. Looking at last week’s activity, you can see the affect Europeis having yet again. While all three...
read moreAnd We’re Off! – A 2012 Perspective
Weekly Update – January 9, 2012 THE MARKETS: Are you getting used to writing 2012 on your checks yet? The first nine days of the new year have sure flown by! After all the hustle and bustle of the holiday season, we hope you’re settling back into a normal routine, and that your first week of 2012 has been a good one. I am happy to report that it was a good week both for stocks and positive U.S. economic news. Stocks kicked off the year on a high note as the Dow Jones industrial average as forecast added 1.2%, the S&P 500 gained 1.6%, and the Nasdaq led with a 2.7% rise. As far as the...
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