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 investors sell losing positions in December and reposition themselves after the first of the year, or vice-versa.[ii] While this is certainly not exact science, and it is far too early to know if January will accurately predict the rest of the year, it is interesting to note.

So far, the Bulls are really showing off. With seven trading days left to go in January, the benchmark indexes are all up between 4% and 7%. The S&P 500’s 4.5% YTD gain marks its best start since 1987![iii] So does this bull have legs? Skeptics will tell you it doesn’t and idealists will tell you it does. We’d like to tell you that we don’t know. We’re not clairvoyant. (Sorry, we know you wish we were.) What we do know is that markets don’t move up or down in a straight line, and we won’t be surprised if we experience a pullback in the weeks ahead. This is not something we fear; it’s just the nature of the stock market.

[i] http://www.stockmarketsreview.com/extras/the_january_barometer_20120110_238133/

[ii] http://en.wikipedia.org/wiki/January_effect

[iii] http://online.wsj.com/article/SB10001424052970203735304577169313330510738.html?mod=googlenews_wsj

We Have to Mention It
Weekly Update – January 16, 2012

We know you’re probably tired of hearing about Europe’s debt crisis, and frankly, we 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 influence Europe’s financial issues have had on us in recent years.

As we look at last week’s activity, we can see the affect Europe is having yet again. While all three indexes ended the week in positive territory, recent gains came at lower-than-normal trading volumes as wary investors dipped their toes in the water, but were afraid to dive in.[i] Stocks finished in the red Friday on expectations that nine Eurozone nations would be downgraded by S&P (and they were shortly after trading hours), including AAA-rated France and Austria. Italy was lowered two notches to BBB+, dangerously close to junk bond levels that could make it even more difficult for the government to raise money.[ii] Here’s the report card[iii]:

France – AAA to AA+
Austria – AAA to AA+
Slovenia – AA- to A+
Slovakia – A+ to A
Spain – AA- to A
Malta – A to A-
Italy – A to BBB+
Cyprus – BBB to BB+
Portugal – BBB- to BB

While investors have been expecting this downgrade since S&P issued a warning last month, the news is still a harsh reminder that Europe is not out of the woods. It is not yet clear how hard the downgrades will hit markets, but it is likely that we will continue to feel Europe’s influence until this situation is resolved. On the bright side, leaders from Germany, Italy, and France have been sounding upbeat about proposed solutions.[iv] We hope their optimism will promptly translate into concrete actions.

[i] http://money.cnn.com/2012/01/13/markets/stocks_lookahead/index.htm?iid=mkt_SF_news

[ii] http://www.ft.com/intl/cms/s/0/78bf6fb4-3df6-11e1-91f3-00144feabdc0.html#axzz1jfmaWNM7

[iii] http://www.standardandpoors.com/ratings/ratings-actions/en/eu

[iv] http://www.ft.com/intl/cms/s/0/324572f2-35e2-11e1-ae04-00144feabdc0.html#axzz1jfmaWNM7

And We’re Off!
Weekly Update – January 9, 2012

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.

We’re 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 added 1.2%, the S&P 500 gained 1.6%, and the Nasdaq led with a 2.7% rise.[i] As far as the economy is concerned, employment figures and purchasing manager surveys released last week suggest the U.S. experienced healthy growth in December.

Despite positive news, the tone on Wall Street has remained cautious and trading volumes have been low. Many investors, it seems, are still torn between rising hopes for the U.S. economy, and the ever-evolving European debt saga. And there is still considerable debate over whether stronger jobs and manufacturing numbers should be attributed to a seasonal holiday binge, or something more permanent.[ii] Ultimately, only time will tell.

The week ahead promises to be a busy one as the unofficial start of corporate earnings season kicks off. We’ll wait to see what corporate leaders have to share, but overall, it is expected to be a strong season. The companies in the S&P 500 are forecast to be up 7.5% in the final three months of 2011, versus the same period one year ago, and sales are predicted to have risen 8.6% for the quarter, according to research from S&P Capital IQ.[iii] While the European debt situation will probably weigh most heavily in the headlines, it will have to share the spotlight with corporate earnings.

[i] http://www.google.com/finance

[ii] http://money.cnn.com/2012/01/08/markets/stocks_lookahead/index.htm, http://www.marketwatch.com/story/latest-data-fails-to-shake-caution-on-us-economy-2012-01-08

[iii] http://money.cnn.com/2012/01/08/markets/stocks_lookahead/index.htm

2011 – A Year in Review
Weekly Update – January 3, 2012

As we close the books on 2011, many will associate the year with Europe’s debt crisis, Congress’ political gridlock, and the stock market’s volatility. And to some extent, they’ll be right. We did face a number of significant challenges during the course of the year. At the same time though, 2011 was a year of growth and healing for the United States.

Americans are spending again, as evidenced by a record-breaking holiday shopping season.[i] Factories are producing more.[ii] Companies are generating impressive profits.[iii] The housing market is showing signs of life.[iv] And with the unemployment rate at its lowest level in nearly three years[v], even the job market is improving. While blind optimism can be a dangerous thing, focusing on the negative can be equally risky. So without amplifying the problems of the past or minimizing the challenges of the future, let’s take a look back at some of the key events that made 2011 what it was.

[i] http://www.icsc.org/apps/memberprint.php?datafile=rsrch/st/st20111228.pdf

[ii] http://www.federalreserve.gov/releases/g17/current/

[iii] http://www.bea.gov/newsreleases/national/gdp/2011/gdp2q11_3rd.htm

[iv] http://blogs.wsj.com/economics/2011/12/20/housing-markets-foundation-looking-more-stable/

[v] http://www.google.com/hostednews/ap/article/ALeqM5hIM1IodHSzv8Lk-yrCbb0EOsH14Q?docId=5e30e69bef9844ec9cc75334d71fe361

entire article

The Final Stretch
Weekly Update – December 27, 2011

It looks like the stock market got a shot of holiday cheer as major U.S. indexes logged better than 3% gains last week. The Dow is now up 6% for the year, and the S&P 500 is back in positive territory. While many were calling for a so-called “Santa Clause rally,” others were concerned that fears surrounding Europe’s situation would continue to be a drag on the markets.[i] Last week however, Europe’s troubles were of little account as stocks rallied to their third weekly gain in four after Congress approved an extension of the payroll tax cut to ensure taxes won’t increase on January 1.[ii] In addition, tentative signs of improvement seen in government reports on personal spending, income, and housing, all helped boost equity markets last week.[iii]

What’s in store for the week ahead? With Wall Street closed for business on Monday, a number of major players on vacation, and few economic reports expected, trading volume will probably be light. Even so, there is something interesting we would like to share with you. According to the Stock Trader’s Almanac, the five trading days before January 1, and the two trading days that follow, typically generate abnormally high returns, yielding positive returns in 31 of the last 41 holiday seasons.[iv] Of course, past performance cannot be relied upon to predict future results, and other factors must be considered, but the trend is worth noting.

While many investors have already closed their books for the year, we head into the final stretch eager to end 2011 in the black. Regardless of what happens during the final four trading days of the year though, we encourage you to take comfort in knowing we will keep an eye on things for you. Again we urge you to relax and enjoy some well-deserved time with your family and friends.

Stay tuned for our annual recap due next week!

[i] http://www.marketwatch.com/story/us-stocks-look-to-keep-holiday-rise-alive-2011-12-24

[ii] http://money.cnn.com/2011/12/23/markets/markets_newyork/index.htm?iid=HP_LN

[iii] http://www.bloomberg.com/news/2011-12-23/u-s-november-personal-income-and-spending-text-.html

[iv] http://www.stocktradersalmanac.com/

It’s Time to Shift Your Focus
Weekly Update – December 19, 2011

Each week, through this commentary, we aim to bring you a brief summary of the most important financial-related news. Our primary goal is to educate you about factors that have the potential to affect your investments, and to help you cut through all the media clutter to find some clarity. Sometimes, finding that clarity can be especially challenging.

Last week, we were faced with a barrage of headlines from all over the world, and each piece of news seemed to have its own unique impact.  In the end, investors struggled to make sense of all the news, and stocks ended a roller-coaster week in which all three indexes lost more than 2.5%.[i]

Historically, the stock market has been sensitive to news. But amidst the uncertainty of recent years, its sensitivity has been heightened to an unprecedented scale. Headlines that would have barely made the evening news 10 years ago can easily lead a rally or retreat in a matter of minutes or hours in today’s environment.

[i] http://money.cnn.com/2011/12/19/markets/premarkets/index.htm?iid=Lead

entire article

Naughty or Nice?
Weekly Update – December 12, 2011

Yet again, investors found themselves watching Europe last week – no surprises there – and were apparently pleased with what they saw. Word of a “new deal” incited a rally in stocks Friday that pushed the Dow Jones industrial average up 187 points, or 1.6%, the S&P 500 up 21 points, or 1.7%, and the Nasdaq up 50 points, or 1.9%.[i] All major domestic indexes finished positive for the week on a wave of optimism.

What is this “new deal” everyone’s talking about? Basically, the 17 nations that use the euro agreed to sign a treaty that allows a central authority to oversee their budgets more closely. The agreement is made up of fiscal rules designed to prevent countries from veering further into crisis mode, and to rescue them if they do. The Friday proposals also commit the countries to put their €500 billion ($670 billion) European Stability Mechanism bailout fund into action next year, instead of in 2013.[ii]

While Britain chose not to support the plan, the majority of EU members are hailing this as a new beginning. German Chancellor Angela Merkel expressed that Europe has “…achieved a breakthrough to a stability union. A fiscal union, or stability union as I call it, will be developed further, step by step in the years to come." And French President Nicolas Sarkozy confidently boasted, “We're doing everything we can to save the euro.”[iii]

[i] http://www.google.com/finance

[ii] http://online.wsj.com/article/SB10001424052970204336104577092173220155512.html?mod=googlenews_wsj

[iii] http://money.cnn.com/2011/12/09/news/international/european_summit_debt/index.htm?iid=EL

Don’t Be Fooled By Fickle Markets
Weekly Update – December 05, 2011

From the worst Thanksgiving week since 1932[i], to the best weekly gain since 2009, last week illustrated how fickle the stock market can be. The Dow Jones Industrial Average finished up 7% for the week, bouncing back from a 5% loss the previous week on news about… are you ready for it… positive developments in Europe. Basically, several central banks made dollar financing cheaper through swap arrangements, and finance ministers took steps to expand the European Financial Stability Facility.[ii] Just as bad news from Europe pushed markets down during Thanksgiving week, good news from Europe pulled markets back up last week. At this point, it should be clear to everyone that we are dealing with highly Europe-charged investor sentiment right now.

So does last week’s rally mean we’re out of the woods and the bulls are back on top? It’s possible, but we don’t recommend counting on it. While some analysts are expecting stocks to maintain their momentum on the “Santa Clause effect” (Stocks have risen in December nearly four out of five times since 1945, according to S&P Capital IQ, and have risen almost 2% in December after dropping in November – as they did last month)[iii], most understand that Europe is still a wild card.

[i] http://www.cnbc.com/id/45435459

[ii] http://seekingalpha.com/article/310966-a-triple-whammy-of-good-news

[iii] http://blogs.smartmoney.com/advice/2011/12/02/record-week-for-stocks-time-to-take-gains/?mod=rss_&link=SM_home_blogsum

entire article

Are You Tired of Hearing About Europe Yet?
Weekly Update – November 28, 2011

It was another brutal week for stocks as fears related to Europe’s debt situation dominated headlines. According to CNBC, the S&P 500 logged its worst Thanksgiving week since 1932.[i] Ouch! For the week, the S&P 500 fell 4.7%, giving back almost two-thirds of its October gains.[ii]

Another factor that contributed to the poor performance is that trading volume was exceptionally light for the week as investors pulled away from their computers to enjoy some holiday relaxation. The day after Thanksgiving is typically one of the lightest volume days of the year, and true to form, only 3 billion shares (less than half the daily average) changed hands on major exchanges as the stock market closed early at 1 pm.[iii]

Even though the U.S. economic picture keeps improving, investors continue looking to Europe for signals. And unfortunately, the signals coming out of Europe are a mixed bag at best. Despite hopes that new leadership can pull the region out of crisis, more countries continue to struggle. Hungary’s credit rating was downgraded to junk status by Moody’s last week.[iv] Belgium, which has struggled to implement spending cuts after 18 months without a government, was downgraded on Friday to AA from AA+ by Standard & Poor's.[v] Italy paid a record 6.5% to borrow money over six months on Friday, and its longer-term funding costs soared far above levels seen as sustainable for public finances. High debt yields from major economies such as Spain, France, and Germany suggest investing in the region is perceived as being more risky. And last week’s poor auction of German bonds raised concerns that the debt crisis is spreading to Europe's core.[vi] This rash of negative news is really disturbing investors. entire article

[i] http://www.cnbc.com/id/45435459

[ii] http://www.moneycontrol.com/news/international-markets/wall-st-suffers-worst-week2-monthseurope-woes_624757.html

[iii] http://www.moneycontrol.com/news/international-markets/wall-st-suffers-worst-week2-monthseurope-woes_624757.html

[iv] http://www.businessweek.com/ap/financialnews/D9R7KE4G0.htm

[v] http://www.smh.com.au/business/euro-zone-looks-to-imf-as-belgium-is-downgraded-20111127-1o1oa.html

[vi] http://www.moneycontrol.com/news/international-markets/wall-st-suffers-worst-week2-monthseurope-woes_624757.html

Thankful for Good News
Weekly Update – November 21, 2011

More than any other time of year, this week is one when people strive to count their blessings. There is no doubt being appreciative for what we have leads to a better, more satisfying life. It is wise to reflect upon the good things we enjoy, for it is one of the actions that can help us deal with the challenges we face.

During the past few years, nearly every corner of the globe has been affected by the financial crisis in some way. Even now, with the recovery well under way, we still feel the effects of high unemployment, a weak housing market, debt issues in the Eurozone, and a volatile stock market. On top of everything else, the media has a tendency to lead with what sells – sensationalism and bad news. So is there any good news out there? Definitely! Here are some developments to be thankful for:

-       The employment picture is improving. The economy added 80,000 jobs in the month of October, and the unemployment rate fell to 9%. Economists are encouraged by signs companies are not cutting workers, and they say November's jobs report could be even better. The weekly jobless claims reports for the past three weeks have shown improvement.[i]

-       The housing market is showing signs of life. The Commerce Department reported that building permits, an indicator of future activity, surged 10.9% during October. In related news, the share of households delinquent on their mortgage payments has fallen to the lowest level since the end of 2008, offering signs that modest job gains are stemming further damage in the battered U.S. housing sector.[ii] entire article

[i] http://www.cnbc.com/id/45355069

[ii] http://online.wsj.com/article/SB10001424052970204517204577044401122300024.html?mod=googlenews_wsj, http://www.forbes.com/2011/11/17/housing-starts-dip-builder-sentiment-improves-marketnewsvideo.html

European Politics Move Markets
Weekly Update – November 14, 2011

It was another yo-yo week for the stock market as ongoing worries surrounding Europe’s debt crisis kept investors in suspense. The choppy period eventually ended with a rally on Friday as welcome news of a political shake-up in Greece and Italy boosted confidence that there will be further progress toward a solution.

Greek Prime Minister George Papandreou has been replaced by former banker and European Central Bank Vice President Lucas Papademos[i], while Italian Prime Minister Silvio Berlusconi, who resigned on Friday, will likely be replaced by former EU Commissioner Mario Monti. The world will be watching as new leadership in both countries fight to implement reforms quickly and aggressively. Just Saturday, the Italian lower house of parliament approved a series of austerity measures demanded by Europe to shore up confidence in the country's economy. It passed by a vote of 380 to 26.[ii]

Why should any of this matter to Investors? While Greece is only the 32^nd largest economy in the world, Italy holds the 8^th spot, and is the 3^rd largest in Europe.[iii] If these two countries can get their acts together, other debt-laden countries in the region will have a model to follow. If they fail to create change, the consequences could be far-reaching. Europe as a whole makes up 25-30% of the global economy, and millions of American jobs depend on stability and growth there. To quote Jacob Kirkegaard of the Institute for International Economics: “Europe is by far our biggest trading partner. It’s where most of our exports go. It’s where we have most of our foreign direct investments. US multinational corporations are in Europe.” [iv] entire article

[i] http://money.cnn.com/2011/11/10/news/international/greece_papademos.cnnw/index.htm?iid=EL

[ii] http://money.cnn.com/2011/11/12/news/economy/italy_austerity.cnnw/index.htm?iid=EL

[iii] http://www.imf.org/external/index.htm

[iv] http://abcnews.go.com/blogs/business/2011/11/italys-debt-crisis-why-does-it-matter/

The Cycle of Growth
Weekly Update – November 7, 2011

If there is one factor with the greatest potential to mend our economy, it is a steadily improving employment picture. How so? When you look at the U.S. economy as a whole, it is primarily supported by consumer spending.[i] In order for consumers to spend, they must have a measure of disposable income. In order to have disposable income, Americans must have jobs.

To look at it another way: As the employment situation improves, consumer spending typically increases, thus creating additional demand for goods and services. As demand for goods and services grows, more production is needed, thus creating more jobs, and so on. At risk of oversimplifying, this combination of factors explains the cycle of a healthy economy.

So are we seeing improvement in the nation's jobs picture? Yes. One year ago, the unemployment rate was 9.7%. As of October's report, it dropped to 9%. On average 152,000 jobs have been added each month during the same time period, for a total of 1.8 million jobs. In addition, the workweek has lengthened and wages are up 1.8%.[ii] All of this shows that the employment picture is gradually improving. Interestingly, October also showed improvement in chain store sales. Overall, the 23 major U.S.-based retailers that report monthly results posted a composite 3.4% gain, according to Thomson Reuters data.[iii] entire article

[i] http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

[ii] http://www.bls.gov/news.release/empsit.nr0.htm

[iii] http://www.reuters.com/article/2011/11/03/us-usa-retail-idUSTRE7A22SH20111103?feedType=RSS&feedName=businessNews

Up, Down, Up… What Now?
Weekly Update – October 31, 2011

In its longest winning streak since January, the S&P 500 has rallied for four straight weeks, adding 14% in October alone. According to a Bloomberg article published on Saturday, this puts the index on track for its biggest monthly gain since 1974![i] The Dow Jones Industrial Average similarly scored an 11% gain this month and just logged its fifth week of gains.[ii]

In comparison with the near 20% decline we saw during July and August, it certainly seems like the stock market has a split personality. What‘s causing all these ups and downs? While many factors are at play, the market moved downward over the summer based primarily on two assumptions:

1. That the U.S. was entering another recession.
2. That the Eurozone financial system was on the verge of collapse.

When neither of these things occurred, investors became uncertain – waiting and watching every headline for signs of what would come next. This led to the heightened levels of volatility we experienced in September..... entire article

[i] http://www.bloomberg.com/news/2011-10-28/u-s-stocks-advance-as-s-p-500-heads-for-best-month-since-1974.html

[ii] http://www.marketwatch.com/story/us-stocks-slip-after-two-day-surge-2011-10-28

Europe vs. Earnings
Weekly Update – October 24, 2011

It’s an interesting time for the stock market. We’re in the middle of a healthy earnings season, economic news is modestly positive, and yet, investors can’t pull their eyes away from the drama in Europe.

On average, 60% of companies in the S&P 500 are beating earnings estimates since the reporting season began this month, and numbers for revenue are coming in even better.[i] The number of people claiming unemployment benefits declined this week, housing construction picked up last month (at least for apartment buildings), and inflation remains low.[ii] Add to this the fact that many analysts are saying stocks are undervalued right now[iii], and it would have been reasonable to expect a stock market rally last week. Instead, what we got was a roller coaster ride that eventually ended the week virtually flat. The Dow and S&P rose a little over 1%, while the Nasdaq fell 1%. read more

[i] http://www.cnbc.com/id/44989932

[ii] http://www.businessweek.com/ap/financialnews/D9QGMP900.htm

[iii] http://www.cnbc.com/id/44989932

Staging For a Comeback?
Weekly Update – October 17, 2011

Just a couple of weeks ago, on October 3^rd, the S&P 500 was down 12.6% for the year and things weren’t looking too good for a comeback. Since that time, it has trimmed the loss to only 2.6% and needs to gain just 33 points to get above the 1,257 where it started the year. If the S&P 500 finishes this year with a gain, it will be its biggest comeback since 1984![i]

What has caused this turnaround? One reason is that investors are becoming more confident that Europe will protect its banks from huge losses on Greek bonds if that country fails to make good on its debt. Another reason is that many people still think stocks are undervalued and that company earnings are going to be better in the third quarter than many analysts expect.... more

[i] http://www.google.com/hostednews/ap/article/ALeqM5g2jVJQwTAzQj4jEVjyUF4D-rBE2A?docId=50f584fc1fb6437e966b30df232971ea

Weekly Market Update
Week of September 26, 2011

Noteworthy Employment Data
Weekly Update – October 10, 2011

The Bureau of Labor Statistics released its monthly Employment Situation Summary on Friday, and the data conclusively proves that the U.S. is not in a recession. To many the data would seem to indicate that the odds of entering into one are much lower than some reports in the media might suggest.

Nonfarm payroll employment edged up by 103,000 in September, and increased by 202,000 if you include upward revisions for July and August. This significantly outpaced consensus expectations of a mere 60,000 gain.[i] And while the report reflected the return of about 45,000 Verizon workers who had been on strike in August, the increases are still significant. Also striking is the fact that the number of weekly hours per worker increased from 34.2 to 34.3. While that may not seem like much of a jump, it is actually the equivalent of adding 320,000 jobs![ii] ... more

[i] http://www.bls.gov/news.release/empsit.nr0.htm

[ii] http://www.ftportfolios.com/Commentary/EconomicResearch/2011/10/7/non-farm-payrolls-were-up-103,000-in-september

Quarterly Review - Q3 2001
October 03, 2011

Eyes on Europe and the Fed

From the debt ceiling debate, to S&P’s downgrade of the United State’s prized bond rating, to ongoing challenges in the Eurozone, and wild swings in the stock market, the third-quarter has taken investors for quite a ride!

July – After a volatile first half that eventually ended U.S. stocks in positive territory, the debt ceiling debate quickly took center stage. As policymakers debated ways to cut spending and raise the nation’s borrowing limit, stock markets faltered.

August – Following an eleventh hour debt ceiling compromise, Italy rose to the forefront of debt problems in Europe and anemic economic news pushed investor sentiment downward. As fear dominated the markets, major indexes erased their gains for the year during the first week of the month. Hitting especially close to home, S&P downgraded the nation’s bond rating from AAA to AA+ on August 5.[i]

September – After a brisk market rally early in the month, European debt woes dominated investor sentiment once again. By the middle of the month, tables turned dramatically as many asset classes experienced their worst weeks in years. Even gold faced its largest monthly fall since October 2008.[ii] In conjunction with persistent concerns about European debt and a weakening U.S. economy, the Fed's Open Market Committee (FOMC) launched “Operation Twist” on September 21^st, leading to further selloffs.......more

[i] http://www.standardandpoors.com/ratings/articles/en/us/?assetID=1245316529563

[ii] http://www.marketwatch.com/story/gold-rises-to-regain-safe-haven-shine-2011-09-30?link=MW_latest_news

Weekly Market Update
Week of September 26, 2011

Less Talk, More Action

After the brisk market rally we experienced two weeks ago, the tables turned dramatically last week as many asset classes experienced their worst week in years. The Dow tumbled 6.4%, the S&P 500 fell 6.5%, and the Nasdaq slid 5.3%.[i] Even gold shed nearly 10% over the course of the week for its biggest drop on a percentage basis in 28 years.[ii]

In conjunction with persistent concerns about European debt and a weakening U.S. economy, the presumed trigger for the panic was that the Fed's Open Market Committee (FOMC) launched “Operation Twist” on Wednesday. The move, designed to bring interest rates down and stimulate the housing market, scarcely proved to reassure investors. “Operation Twist” calls for the Fed to sell short-term securities (maturing in three years or less) from its sizeable $1.7 trillion holdings of government debt and use the $400 billion raised to buy longer-term mortgage-backed securities maturing in six to 30 years.[iii]

At the same time, the Fed accompanied its announcement with a lukewarm (at best) assessment of the economy. While stating that they continue to expect some pickup in the pace of recovery over coming quarters, they cited “significant downside risks to the economic outlook, including strains in global financial markets.”[iv] .... more

[i] http://www.google.com/finance

[ii] http://www.foxbusiness.com/investing/2011/09/23/dismal-week-stocks-metals-crushed-in-worst-plunge-in-years/

[iii] http://www.nytimes.com/2011/09/22/business/22text.html

[iv] http://www.nytimes.com/2011/09/22/business/22text.html

Weekly Market Update
Week of September 19, 2011

Eyes on Europe and the Fed

U.S. stocks posted solid performance Friday to wrap up a five-day winning streak for the first time since July. The Dow and the S&P 500 were each up around 5% for the week, while the NASDAQ climbed 6.3% for the week. The five-day move was the best we’ve seen in two years.......more

Weekly Market Update
Week of September 12, 2011

Ten Years Later

For most of us, 9/11 feels like yesterday. For a younger generation, Sunday’s services etched a memory of that day onto minds too young to recall it. Three-thousand-six-hundred and fifty-two days have since passed, but as New York City Mayor Michael Bloomberg so poignantly stated, “We can never un-see what happened here.” While most Americans wish they never had to witness the events of that defining day, they are equally determined never to forget them......more

Weekly Market Update
Week of September 05, 2011

Understanding the August Jobs Report

The big news last week centered on the August jobs report, which was disappointing to say the least. Non-farm payrolls were unchanged in August but down 58,000 including revisions to June/July. The consensus expected a gain of 68,000. The unemployment rate remained unchanged at 9.1%.......more