23 Jan 2009

Posted at 15:22h in The Friday Brief by
Good news on the economic front is rarer these days than moments of grace from our new Vice President. The lofty and idealistic words of President Obama, so well spoken seem a distant whisper among the barrage of history-making declines in housing, employment, prices, and confidence. Republicans and Democrats are already at loggerheads over the stimulus package. Corporate earnings are more dismal than expected and equities markets have given up almost two-thirds of their gains from lows reached in November.

25 Jul 2008

Posted at 15:31h in The Friday Brief by
On the 14th of this month, the collective global investor decided oil was entirely too expensive. It is down nearly 15% from its peak of $147.27 per barrel. During the same period the Dow Jones Industrial average rallied 2.7%, the small cap Russell 2000 jumped 5.7%, and the tech-laden Nasdaq, 3%. Some better-than-expected news from leading banks added fuel to the rally.

19 Oct 2007

Posted at 16:09h in The Friday Brief by
This Friday marks the 20th anniversary of “Black Monday,” which sent the Dow Jones Industrial Average spiraling down 508 points or 23% in a day. The panic was sparked by investors realizing that Fed Chairman Paul Volker was wringing money out of the economy without apparent regard for its near-term health. His aim was to irradiate the prolonged and excessively high inflation of the time. The market drop was the second largest inUS history, second only to the first trading day after shutdown following the outbreak of WWI on 12/12/1914.

18 May 2007

Posted at 14:34h in The Friday Brief by
Despite another week of lackluster news from the economy, the S&P 500 and the Dow Jones Industrial Average are headed for their seventh straight week of gains. The Dow has declined only 5 days out of the last 30. Record takeovers so far this year are steadily driving stock prices higher. Today’s prices are up on two more takeovers and a surprise increase in consumer confidence. The Reuters/University ofMichigan's preliminary index of sentiment rose to 88.7% this month from 87.1% in April. It was the first increase in four months as strength in the labor and stock markets overcame record gasoline prices.