It’s July, summertime…wow, wasn’t it just January?
It looked kind of grim last week as each day presented a new dilemma and angst over the markets. A massive advance on Friday erased the negative numbers allowing the S&P 500 and the Dow Jones to sneak out small gains for the week. The NASDAQ and Russell 2000 couldn’t go the distance and ended the week with losses. Global markets didn’t sustain very well either, as 8 of 12 foreign indexes posted losses, Germany’s DAX composite took home the lions share with an advance of nearly 2.3%.
Overall we gained a number of economic positives from the week. Unemployment claims came in lower than expectations, and producer prices were indicative of further stabilization. Earnings season changes the subject ever so briefly, as this week brings announcements from blue chips. I’m expecting a positive reaction from the market to those earnings and therefore steer a positive action in the markets for the summer months. Value is outperforming growth while the outlook for economic growth is so tentative and dividends are heavily demanded. Keen investors will benefit by focusing on the market action and ignoring all the regular noise merchants of Blah did de Blah Blah Blah.
Treasuries played a back seat to the Muni as yields fell on the week overall, as alarm came into the market on the news of more municipal bankruptcy filings. Oh snap, you mean tax dollars that were marked for projects were shifted somewhere else? Statements falsified, lies told? Next you’re going to tell me that Dog’s don’t sit around and play poker with each other, aren’t you? Oh agony!!
Commodities overall had a good week as Grains continued to advance. The (ahem, KING) U.S. Dollar Index continued to display strength but it fatigued by weeks end allowing the euro to climb back up from trading under $1.23.
I’m remain optimistic, knowing full well Europe is still hanging around, being relatively quiet, there is still plenty drama to rival the airings of teenage mother something on that music channel that used to play music videos. Our well paid plus benefits having, elected federal officials continued to proudly do absolutely nothing. No real surprise there, is there? I’m optimistic because I suggest that; Earnings will be decent, momentum will be built, markets will move positive and summer will be enjoyably summer. I’m optimistic.