Monthly Archives: January 2008

The performance of the markets this January has been among the worst on record.  Almost everything has been down sharply, with the exception of the beaten down homebuilding and financial services sectors which actually posted nice gains.   While we’re warming up to the financial sector given easing monetary conditions, the upward move has likely been exacerbated by short covering [...]

Durable goods orders surged 5.2% in December.  While this economic release is notoriously volatile on a month to month basis, the magnitude of the current results supports the view that the recession in the housing and financial services industries hasn’t spread to the economy at large.  We are also entering the thick of earnings season, with this [...]

The markets rallied an amazing 4.9% off their intra day lows yesterday to close up on the day.  The action was so intense, that my wife Lisa got in on the commentary, sending me the following words of wisdom after the close.                                     capitulation– C-A-P-I-T-U-L-A-T-I-O-N                                   I believe there has been capitulation in the market.                                                           CapitulationIt also turns [...]

Everyone knows by now that the Fed lowered rates in a surprise cut yesterday of 75 basis points before the markets opened.  This is certainly a good start and shows that the Fed isn’t asleep at the wheel, which was the impression they gave at last week’s Congressional testimony.  The markets have declined steeply from their [...]

Thanks to our friend Jason Trennert, Chief Investment Strategist and CEO at Strategas Research Partners, for passing along this You Tube clip of Marcy Kaptur, Congresswoman from our beloved Ohio, in yesterday’s Congressional testimony.  I hadn’t seen or heard about this clip when I posted yesterday’s entry, Blah, Blah, Blah, but suffice it to say, I think [...]

Bernanke’s testimony to Congress this morning, and in fact most testimonies to Congress, often have the quality of an old fashioned sideshow act at the circus.  Come see the world’s fattest woman!  Feast your eyes on the man with four arms as he wrestles a tiger with no tongue!  Watch the Fed Chairman as he drones on about softening in [...]

The intra day volatility in the markets continues on the extreme side.  Near the end of the trading day, we’re roughly flat.  At one point, the markets were down between one and two percent and up as much as a percent.  These intra day swings feel orderly and not necessarily panicked.  By this, I mean that specific stocks are [...]

The markets have played the role of ugly duckling so far in 2008.  The Fed’s statement last week that they would take swift action to prevent further economic weakness suggests that the economy may be more fragile than they had previously expected.  The Fed will likely cut by 50 basis points at their month end meeting, if not earlier.  Earnings season starts [...]

This is our first entry in a little over a week.  We’re usually pretty busy with quarter and year end reporting activities, but a travel commitment late last week made things a bit tighter than usual.  As the dust begins to settle, we’ll certainly be back on schedule, blogging on a more regular basis.  If you missed the 2007 performance [...]