24 Sep 2010

Posted at 16:22h in The Friday Brief by
Once again a headline issue with both near and long-term impact on this country’s economic future was decided by the majority party, completely on political terms; this time it was for personal survival. Going back a few months it was in the name of economic survival. The extravagant American Recovery and Reinvestment Act of 2009 was supposed to save the day. Some derided the $787 billion bill as “Speaker Pelosi’s Payoffs and Pork Bill.” In fact it provided limited if any stimulus impact. And the crowning accomplishment of the majority party: The Affordable Healthcare for America Act. This massive sea-change of American culture and economy was literally rammed down the throats not only of the minority party in Congress, but the American people.

20 Sep 2010

Posted at 14:40h in The Friday Brief by
Is the economy falling into recession or is it merely stalling? The S&P 500 is off its April high by 12% while the rally in the 10-year US Treasury has driven yields to 2.55%, the lowest in 17 months. Yesterday the government’s leading economic indicators showed an increase of .1% in July provides hope that the economy is merely in a stall. But jobs, housing, and even manufacturing which has been a bright spot for the economy were more worrisome as they each declined this week. While the economic numbers were mostly negative this week, there is a bright spot. Intel’s acquisition of security software maker McAfee brings the August total of announced takeovers to more than $175 billion. Acquisitions are on a pace for August to surpass March as the biggest month for deals this year, according to Bloomberg. The month is typically the slowest.

17 Sep 2010

Posted at 16:31h in The Friday Brief by
The mood on Wall Street has brightened considerably over the last couple of weeks. With only one down day in the last 12 (not counting Tuesday’s decline of .06%) the S&P has rallied 7.5% so far this September, following the worst August since 2001 losing 4.7%. September is traditionally a bad month for stocks as companies begin warning of earnings disappointments for the third quarter and mutual fund managers return to stir their pots as they return from summer vacations.

10 Sep 2010

Posted at 16:36h in The Friday Brief by
Whatever economists ultimately label this period in American history, no doubt fear will play a large part in their description of it. Confidence numbers among consumers, investors, voters, and businesses hit all-time lows in 2008 and are only gradually coming back. The declines in economic indicators this summer sparked new fears, including a return to recession, even deflation. The new wave of trepidation drove many investors out of stocks once again and back into the short-term safety of money markets and short Treasuries.