26 Feb 2010

Posted at 16:52h in The Friday Brief by
Today’s news from the government comes as welcome relief after a week of sub-par economic reports. The economy’s fourth quarter expansion of 5.9%, higher than initially reported, ranks as the best performance in six years, according to the Department of Commerce. The government’s initial estimate last month was 5.7%, where economists pegged the quarter’s growth. But the group most surprised is undoubtedly the US consumer whose dour mood unsettled investors earlier this week. 

12 Feb 2010

Posted at 16:55h in Briefs about our Process, The Friday Brief by
The recent 8.2% dip in stock indices from their January 15th peak provides an opportunity for reflection. While market declines in general are not pleasant, one can understand investors are understandably squeamish after the 37% drop in 2008 and the peak-to-trough drop of 57% from October ‘07 to March ‘09. But ever since stock markets began, values have dropped then recovered only to go on to new heights. Our purpose today is not to predict the market’s next move, but to objectively examine its nature and demonstrate why worrying about the dips is needless and avoidable.

05 Feb 2010

Posted at 14:58h in The Friday Brief by
Stocks around the world took a turn for the worse yesterday as debt concerns from the Euro–zone mounted and first-time unemployment insurance claims came in considerably higher than expected. Today’s good news on the overall unemployment rate slowed the market’s decline, but hasn’t stopped it. The S&P is now down 7.6% from its January 19th peak; however prices remain nearly 60% above their lows of March 2009. Alternatively, US Treasuries are rising. They gained yesterday as investors fled to quality amid uncertainty in Greece, Spain and Portugal. Three to seven-year Treasuries were up .6% to .8% and 7-10 year Treasuries were up .8% to 1%. Gold fell the most since 2008, with April futures losing 4.1% to $1,066.60 an ounce in New York. The metal is down 26% from its high in early December as inflation has failed to materialize. 

29 Jan 2010

Posted at 15:03h in The Friday Brief by
Approaching President Obama’s Wednesday state of the union address, many expected he would steer a new direction, away from a decidedly liberal agenda toward the center. He obliged with more than a few promises on how he would do just that. He took a clearly more populist/centrist tone, berating bankers, rebuking congressmen and senators for partisan bickering, reminding critics of his many “tax cuts,” and doing it all in his own version of “I feel your pain.” He even nodded to the right on initiatives such as nuclear power and offshore drilling. He urged Congress to pass a new jobs bill, called for the extension of a big business tax break, and the creation of a small business tax credit. In a follow-through today, it is reported that the president plans to propose tripling loan guarantees for new nuclear reactors to more than $54 billion.