Eight months into the year, the S&P 500 is up 2.37% and the NASDAQ is down 6.58%. From January 2005, which marked the end of the last decent rally, the S&P 500 has gained 7.4%, which is about the same return as an investment in bank CD’s over the same time frame.
Read MoreStocks looked pretty healthy right up until May 10th when the Federal Reserve Bank raised rates for the 16th time to 5.0%.
Read MoreOn May 19th, we wrote, “Stocks rallied into this afternoon’s close, which we believe marks the bottom of this particular pull back. Most likely we’ll be investing recent client deposits on Monday.”
Read MoreThe modest correction of the past two weeks bears some comments. On May 9th, the major indices were at 6 year highs with the Dow 80 points from an all-time high and the S&P 500 13% from its all time high.
Read MoreUS stocks put in a decent return for Q1 2006 even as oil prices settled in at the highs for the quarter, the Federal Reserve continued to raise short term rates, the situation in Iraq improved only modestly, housing prices settled back on falling sales, the 10 year yield moved substantially towards 5%, and President Bush’s approval ratings hit the lows for his presidency.
Read MoreAnnually, we take some time to think about the big picture trends that are driving the US economy and society, pick out interesting themes and trends, then consider those companies whose products and services address those trends.
Read MoreThe S&P 500 gained 1.9% in the 4th quarter and gained 4.2% for the year. Nearly all the return for 2006 came from November 1st through the second week of December, with the S&P 500 peaking for the year on December 14th, but sliding 2% by year end.
Read More