The market is just on fire today. I can’t say that any one piece of news has sparked the rally, but it is a monster rally all the same. At this moment in time, the S&P 500 and Russell 1000 Growth indices are up 1.8% each and our portfolio is up 2.6%. Oil prices are falling a bit, just below $92. Bear Stearns just announced 600 layoffs, hardly enough to move the unemployment needle, but perhaps an indication of things to come in the financial services industry.
Some are feeling that the Fed may actually cut again, not just 25 bps, but perhaps even 50bps. Two weeks ago, Bernanke gave a speech to the Cato Institute. In his speech, he told us that “the Federal Reserve is legally accountable to the Congress for two objectives, maximum employment and price stability, on an equal footing.” Perhaps some of the recent news is sinking in for the Fed, namely that price inflation is more likely to reverse course through falling housing prices and perhaps even a crack in energy and that employment might not be so “maximized” without further action. In a global economy, could it also be that an Abu Dhabi “put” is threatening to replace the Greenspan one?
While the market’s technicals were a little better yesterday than they have been for some time, intra day volatility has been huge. We’ve seen the market swing 300 basis points each way several times in just a few hours of trading. With all the muck, it’s been tough to plant any stakes.
In spite of November’s ugly ride, we’ve actually held our own and are outperforming for the full quarter. It ain’t over until it’s over, especially in this environment, but at least it’s been an encouragement. We continue to stick with the same theme.
Growth investing tends to shine in a cooling economy, where innovation replaces the economic cycle as the primary influence of value.
Some are feeling that the Fed may actually cut again, not just 25 bps, but perhaps even 50bps. Two weeks ago, Bernanke gave a speech to the Cato Institute. In his speech, he told us that “the Federal Reserve is legally accountable to the Congress for two objectives, maximum employment and price stability, on an equal footing.” Perhaps some of the recent news is sinking in for the Fed, namely that price inflation is more likely to reverse course through falling housing prices and perhaps even a crack in energy and that employment might not be so “maximized” without further action. In a global economy, could it also be that an Abu Dhabi “put” is threatening to replace the Greenspan one?
While the market’s technicals were a little better yesterday than they have been for some time, intra day volatility has been huge. We’ve seen the market swing 300 basis points each way several times in just a few hours of trading. With all the muck, it’s been tough to plant any stakes.
In spite of November’s ugly ride, we’ve actually held our own and are outperforming for the full quarter. It ain’t over until it’s over, especially in this environment, but at least it’s been an encouragement. We continue to stick with the same theme.
Growth investing tends to shine in a cooling economy, where innovation replaces the economic cycle as the primary influence of value.