Doing Well, but Not out of the Woods
Posted On: August 9th, 2009 by James Posted In: Financial Health • Government Actions • Mortgage Rates
There has been a lot of positive momentum in the stock market lately. This is usually considered a “leading indicator” of our economy. Meaning if the economy is going to improve, the first thing to indicate this would be an improving stock market. This calendar year has been unprecedented in its volatility in both the stock and bond markets. Earlier in March, the Dow index was below 7000 which many believed had priced in a full economic depression. Now that has moved upwards since, pricing in the recession, and upward still today now seeming to price in a recovery.
This most recent run up feels a little like a kind of exuberant high, and I think we still have one more big “shock wave” coming in the next 6 weeks or so. The big traders will have to be super tempted to sell soon at these 9 month highs. In addition to this, I believe the financial sector is still in very poor shape. We’ll see just how poor when the 3rd quarter earnings are released in October.
Lots of events this week that could potentially move the bond market.
No comments yet.
Comments are closed.
