Sunday, May 24, 2015 09:24am
North Adams, MA now: 57 °   
Send news, tips, press releases and questions to info@iBerkshires.com
The Berkshires online guide to events, news and Berkshire County community information.
LOG IN | REGISTER NOW   

Home About Archives RSS Feed
@theMarket: Just About There
By Bill Schmick On: 05:03PM / Friday February 14, 2014
Important
0
Interesting
0
Funny
0
Awesome
0
Infuriating
0
Ridiculous
0

What a difference one week makes. All the concerns that were ostensibly responsible for the stock market's 7 percent decline in January have already been forgotten. It appears investors are bound and determined to push the markets back to the highs.

The markets were up four out of five days this week. Clearly, by Friday, the averages seem to be running on fumes so a bit of a pullback would not come as a surprise. Several technical indicators are screaming overbought conditions. Yet, short sellers beware. It is going to remain very difficult to make any money betting against this market.

The question you may be asking is what happens once we regain the highs. Do we forge ahead or will there be a period in which the markets trade in a range? The likely scenario is a range bound market for a few months as the fundamentals catch up to the price level of these equity indexes.

This earnings season did nothing to heighten expectations that companies will be able to continue beating estimates. Less than half of all companies reporting so far have beat estimates. Most came in on the money, while a minority failed to live up to expectations. That would make this quarter's numbers a net neutral.

Naturally, just about every company that has disappointed has blamed the weather for their results. Even though this winter's brutal storms have definitely impacted American businesses' bottom lines, I suspect it is an all-too convenient scape-goat but it may give us hints to what is ahead.

Most economic data reflects what has happened in the past, so I suspect that we will see some disappointing numbers over the next month or two. There will be the usual debate among pundits on whether that weakness reflects a one-off, weather-related slow-down or something more threatening such as a slowdown in underlying economic growth. It could furnish an excuse for the markets to slow down or even mark time until the future is a little less snow packed.

I say hogwash to those fears (if they occur). The economy is growing and will continue to grow throughout the year. If there is any weakness in the stock market because of a perceived slowdown, that, in my opinion, would be another opportunity to buy the dip and nothing more.  

In the meantime, you may have noticed that the politicians in Washington are playing nice. Color me cynical, but this week's passage of the debt ceiling is all about mid-term elections and nothing more.

 Republicans and Democrats are desperately trying to repackage their ineptitude before November. Both sides are hoping that if they drop their penchant for confrontational politics now, the voter will actually believe they are turning over a new leaf and should be given a ninth or tenth chance to perform the duties they were elected to perform. It is all smoke and mirrors and you deserve what you get if you fall for it.

The S&P 500 Index is only 12 points away from its former high. If you were thinking of putting new money to work this week, I would hold off and see what happens. We could very well drop back to 1,800 or a little lower so keep your powder dry for now.

Bill Schmick is registered as an investment adviser representative with Berkshire Money Management. Bill’s forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquires to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.



0 Comments
     
News Headlines
New Italian Restaurant Opens in North Adams
Cheshire & School District Agree to Better Communications
Williamstown Con Comm OKs Restoration Plan for Waubeeka
Doug Clark To Leave Director of Community Development Post
Williamstown Town Meeting OKs Parking, Signage
iBerkshire Tag Sales: May 22-24
Sullivan Students Celebrate Memorial Day
Holiday Hours: Memorial Day
Memorial Day Events 2015
Pittsfield Community Connection Introduces Team Fighting Youth Violence

Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com Visit www.afewdollarsmore.com for more of Bill’s insights.

 

 

 



Categories:
@theMarket (169)
Independent Investor (229)
Archives:
May 2015 (5)
May 2014 (2)
April 2015 (8)
March 2015 (6)
February 2015 (7)
January 2015 (9)
December 2014 (7)
November 2014 (4)
October 2014 (9)
September 2014 (5)
August 2014 (7)
July 2014 (2)
June 2014 (6)
Tags:
Energy Economy Fiscal Cliff Markets Rally Euro Pullback Debt Deficit Election Fed Housing Congress Stocks Interest Rates Selloff Crisis Recession Oil Metals Jobs Greece Japan Taxes Europe Retirement Federal Reserve Banks Debt Ceiling Stock Market Europe Stimulus Bailout Currency Commodities
Popular Entries:
The Independent Investor: Don't Fight the Fed
The Independent Investor: Understanding the Foreclosure Scandal
@theMarket: QE II Supports the Markets
The Independent Investor: Does Cash Mean Currencies?
@theMarket: Markets Are Going Higher
The Independent Investor: General Motors — Back to the Future
The Independent Investor: Will the Municipal Bond Massacre Continue?
@theMarket: Economy Sputters, Stocks Stutter
The Independent Investor: How Will Wall Street II Play on Main Street?
The Independent Investor: Why Are Interest Rates Rising?
Recent Entries:
@theMarket: June Is Off the Table
The Independent Investor: Will Memorial Day Kick Off a Strong Summer?
@theMarket: Another Record High
The Independent Investor: Millennials & Money
The Independent Investor: Avian Flu Scrambles the Egg Business
The Independent Investor: Does Another Trade Pact Make Sense?
@theMarket: Buy on the News
The Independent Investor: Should You Manage That 401(k)?
@theMarket: Right Back Into the Range
The Independent Investor: Brazil Not For the Faint of Heart


Lee High Prom 2015
Lee High School held its senior prom at Cranwell Resort in...
Sullivan School Memorial Day...
Students, faculty, veterans, and distinguished guests...
Lacrosse: Pittsfield at...
Brendan Leary led the Pittsfield boys lacrosse team to a...
T&F: Quad Dual Meet
Mount Greylock's track and field team hosted three other...
Baseball: Wahconah at...
"It was really cold out today, and I had to heat up my...
Baseball: Hoosac Valley at...
Abel changed all that with one swing of the bat, drilling a...
Cooperstown NY Hall of Fame...
Wahconah; Pittsfield; Hoosac Valley; Taconic
SB: Hoosac Valley at Lenox
Megan Goyette pitched a two-hiter and Kali Puppolo went...
Senior Citizen Prom 2015
Drury High School Sociology Classes hosted the Senior...
T&F: Drury @ Hoosac
The Drury girls took the last track and field events Friday...
T&F: PHS @ Taconic
Jay Doucette won the 100 meters and shot put and placed...
BArT Prom 2015
Berkshire Arts & Technology Public Charter School held its...
Drury High Prom 2015
Drury High School held its prom at the school on Saturday...
Lenox Prom 2015
Lenox High School students were announced as they made...
Mount Everett Prom 2015
Mount Everett School held its prom at Crissey Farm in Great...
MCLA Graduation 2015
The Massachusetts College Of Liberal Arts Class of 2015...
Lee High Prom 2015
Lee High School held its senior prom at Cranwell Resort in...
Sullivan School Memorial Day...
Students, faculty, veterans, and distinguished guests...
Lacrosse: Pittsfield at...
Brendan Leary led the Pittsfield boys lacrosse team to a...
T&F: Quad Dual Meet
Mount Greylock's track and field team hosted three other...
Baseball: Wahconah at...
"It was really cold out today, and I had to heat up my...
| Home | A & E | Business | Community News | Dining | Real Estate | Schools | Sports & Outdoors | Berkshires Weather | Weddings |
Advertise | Recommend This Page | Help Contact Us
iBerkshires.com is owned and operated by: Boxcar Media 102 Main Street, North Adams, MA 01247 -- T. 413-663-3384 F.413-664-4251
© 2012 Boxcar Media LLC - All rights reserved

Privacy Policy| User Agreement