Friday, February 27, 2015 01:01am
North Adams, MA now: 10 °   
Send news, tips, press releases and questions to info@iBerkshires.com
The Berkshires online guide to events, news and Berkshire County community information.
SIGN IN | REGISTER NOW   

Home About Archives RSS Feed
@theMarket: Markets Turn Positive for the Year
By Bill Schmick On: 03:58PM / Saturday March 01, 2014
Important
0
Interesting
0
Funny
0
Awesome
0
Infuriating
0
Ridiculous
0

It is official. We made a new high this week and the markets appeared to be in "melt-up" mode. So why is everyone cautious?

After almost two months of consolidation, the equity markets broke out once again, spurred by the knowledge that if the economy falters, the Fed remains ready to reverse course.

Yet, by Friday afternoon, the bears were fighting hard to ruin the party.

It was no accident, in my opinion, that Fed Chairwoman Janet Yellen's testimony before a Senate panel on Thursday was followed by a record-breaking gain in the S&P 500 Index. But by Friday afternoon, the benchmark index was barely holding its gains. True, not all the indexes have reached new highs. Dow Theorists won't feel comfortable until both the industrials and the transports also break out and confirm the gains in the other indexes.

Yellen, in her testimony, said that the central bank was studying the economic data closely. She said, "a number of data releases have pointed to softer spending than many analysts had expected. Part of that softness may reflect adverse weather conditions, but at this point, it's difficult to discern exactly how much. In the weeks and months ahead, my colleagues and I will be attentive to signals that indicate whether the recovery is progressing in line with our earlier expectations."

This is a departure from her upbeat comments over the last few weeks when she appeared more positive over the future prospects of the economy. So why did the markets go up? I believe investors assume that if the economy were to slow further, the Fed would reverse its recent tapering and some argue that the Fed might even inject more stimulus into the economy.

Readers may recall that I have been expecting to see a spate of disappointing numbers in the weeks ahead as the country continues to suffer from the impact of the Polar Vortex. Today's GDP data, for example, indicated the economy in the fourth quarter dropped to 2.4 percent versus 4.1 percent reported in the third quarter. Lower exports and consumer spending were the main culprits in the sluggish number.

My own belief is that once the country thaws out from this winter's deep freeze, activity will once again spurt higher. However, between now and then, the stock market may get spooked by fears that the economy is rolling over.

As for events overseas, specifically in the Ukraine, the markets have been able to absorb events without too much difficulty. Naturally, when tensions rise between Mother Russia and the U.S., one must pay attention to events. Vladimir Putin seems bound and determined to escalate the situation further but hopefully cooler heads will prevail.

There has been so much talk this week on whether the market is "topping" out that I have my doubts. I would stick with the game plan and remain invested. The worst that could happen is that we have another mild pullback and we fall back into a trading range.

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
Clarksburg School Selects New Principal
Farley-Bouvier Files Bills To Combat Sexual Assault On Campus
Williamstown Ballot Spots Yet to Be Filled
Taconic High School Project Budget Expected Monday
Cheshire Hesitant on School Restructuring, Preparing for Budget
Clarksburg Weighing Options for Health Inspections
Adams Restaurant Owners Wary Of Possible Meal Tax
Pittsfield Considering Ways To Even Out Elementary School Enrollment
Berkshire Arts & Tech School Unveils New Gym, Cafeteria
Mount Greylock Committee Sends Preliminary Budget to Towns

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 (160)
Independent Investor (217)
Archives:
February 2015 (5)
February 2014 (1)
January 2015 (9)
December 2014 (7)
November 2014 (4)
October 2014 (9)
September 2014 (5)
August 2014 (7)
July 2014 (2)
June 2014 (6)
May 2014 (9)
April 2014 (8)
March 2014 (6)
Tags:
Fed Commodities Bailout Housing Interest Rates Retirement Congress Federal Reserve Stimulus Economy Deficit Europe Debt Ceiling Taxes Currency Stocks Stock Market Recession Euro Oil Markets Europe Fiscal Cliff Energy Election Greece Selloff Pullback Debt Jobs Banks Rally Crisis Metals Japan
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?
The Independent Investor: How Will Wall Street II Play on Main Street?
@theMarket: Economy Sputters, Stocks Stutter
The Independent Investor: Why Are Interest Rates Rising?
Recent Entries:
The Independent Investor: How to Make the Most Out of Social Security
@theMarket: A Race to the Bottom
The Independent Investor: The Grecian Drama
@theMarket: The Labor Market Is on Fire
The Independent Investor: Joint Business Is Jumping
The Independent Investor: College Savings Accounts Are Not Risk-Free
@theMarket: More Stimuli Equal Higher Markets
The Independent Investor: The European Central Bank Delivers
@theMarket: Tail That Wagged the Dog
The Independent Investor: What's Happening to the Movies?


View All
Girls BB: Lee vs Mount...
Karli Retzel hit a 3-pointer and went 2-for-2 at the foul...
Boys Hockey: Wahconah vs...
The No. 5 Warriors won over No. 4 Belchertown 2-0 Tuesday...
Boys Hockey: Mt Everett vs...
Amherst No. 3 seed eliminated No. 6 Mount Everett 3-0...
Boys BB: Holyoke Catholic vs...
Monday evening, as the No. 5 Lenox basketball team was...
Congressman Neal Tours...
U.S. Rep. Richard Neal toured Unistress, Modern Mold & Tool...
Winterfest 2015
Chowder, wagon rides and ice sculptures attracted residents...
State Voc Semifinals
FINAL: Franklin Tech advances to State Voc Final with 63-44...
Berkshire County Bowling...
Lee won the Berkshire County Bowling Title over Drury 3...
Boys BB: Lenox @ Greylock
The Lenox boys basketball team defeated Mount Greylock,...
Boys BB: Hoosac vs PHS
After starting off slow and falling behind 14-6 after the...
Boys BB: Mount Greylock vs...
Jake Benzinger's passing out of the paint in the second...
Girls BB: Mount Everett @ Mt...
Lucy Barrett scored 12 points in her first game back since...
Girls BB: Wahconah vs Drury
Wahconah Girls win on Senior Night at Drury High School,...
Boys BB: Taconic @ Wahconah
Senior Kevin Boino led the Wahconah boys basketball team...
Boys BB: Hoosac Valley vs...
Nate Tomkowiewicz hit a late 3-pointer to give the Hoosac...
Girls BB: Northampton vs...
Northampton won over Wahconah 49-36
Girls BB: Lee vs Mount...
Karli Retzel hit a 3-pointer and went 2-for-2 at the foul...
Boys Hockey: Wahconah vs...
The No. 5 Warriors won over No. 4 Belchertown 2-0 Tuesday...
Boys Hockey: Mt Everett vs...
Amherst No. 3 seed eliminated No. 6 Mount Everett 3-0...
Boys BB: Holyoke Catholic vs...
Monday evening, as the No. 5 Lenox basketball team was...
Congressman Neal Tours...
U.S. Rep. Richard Neal toured Unistress, Modern Mold & Tool...
| Home | A & E | Business | Community News | Dining | Real Estate | Schools | Sports & Outdoors | Berkshires Weather | Weddings
Advertise | Recommend This Page | Help Contact Us | Privacy Policy| User Agreement
iBerkshires.com is owned and operated by: Boxcar Media 102 Main Street, North Adams, MA 01247 -- T. 413-663-3384 F.413-664-4251
© 2000 Boxcar Media LLC - All rights reserved