Saturday, May 30, 2015 12:36am
North Adams, MA now: 63 °   
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: Black Friday In More Ways Than One
By: Bill Schmick On: 05:30PM / Friday November 26, 2010
Important
0
Interesting
0
Funny
0
Awesome
0
Infuriating
0
Ridiculous
0

As 138 million Americans planned their Thanksgiving holiday assault on the nation's willing retail emporiums today, others around the world are working on a more lethal stratagem that has investors more concerned than thankful.

North Koreans greeted our Black Friday with their own version of a 21-gun salute as they bombarded the disputed waters around Yeonpyeong Island even as our U.S. commander in South Korea, Gen. Walter Sharp, was on the island inspecting this week's provocation by the North. The ongoing dispute follows the sinking of a South Korean submarine eight months ago in the same territory of the Yellow Sea. Asian markets sold off as tensions escalated.

There was not much Thanksgiving cheer in Southern Europe either as European debt worries escalated. You would think that now that Ireland has accepted a bail out from the EU, things would calm down. Instead, investors worried about which nation would be next on the list to cry for financial help. Portugal, it seems, is now the center of attention with Spain and Italy still waiting in the wings. Most European markets were trading down as U.S. markets opened on this holiday-shortened Friday.

I wouldn't make too much out of the sell-off. Readers may recall last year's sell-off on the same day as a result of a perceived financial crisis in the Middle East. The following week all the losses suffered that day were quickly regained and then some. As I cautioned readers last week, this pullback may have a bit more to go before the markets are ready to resume their climb.

On the plus side, our own economy appears to be gathering strength with unemployment dropping, consumer spending rising and consumer confidence regaining its footing. As the economic data continues to improve I expect it will provide firm support for further upside in the world’s stock markets. I guess the only possible fly in the ointment I see right now is the failure of congress to act on the looming expiration of the Bush tax cuts. As readers know, I have written about the predicted logjam in Washington that I fear is now upon us.

It is unbelievable to me that politicians will allow these cuts to expire at the end of the year. The Democrats argue that only the middle class should escape the tax increase while the Republicans want everyone including the "rich" (defined by those families who make more than $250,000 a year) to be spared the horrendous increase in taxes. In my opinion, if nothing is done and we all greet the New Year far poorer than we already are, the economy will most definitely suffer.

What rebound we are beginning to experience now will be short-circuited. Consumer confidence will falter and with it the stock market, housing and job growth. The actions of the lame-duck Congress since the elections have not given me a lot of confidence that the two sides will be willing to compromise on anything given the legislative stalemate that has occurred thus far. One can only hope that our elected officials will begin to act and do what is best for the country. As it stands, both sides seem to be preparing for re-election in two years as opposed to governing in the here and now.

At Thanksgiving dinner among friends and family in Pittsfield, both young and old were glum about the prospects for compromise within the government. We all agreed that this country needs term limits and needs them now as a possible start to electing leaders and not career politicians. However, that's not going to get the tax cuts expended by the Christmas holidays. I suggest we all write to Santa this weekend with those extensions at the top of our wish list. In the meantime, I hope you all had a great Thanksgiving.

Bill Schmick is an independent investor with Berkshire Money Management. (See "About" for more information.) None of the information presented in any of these articles 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 e-mail him at wschmick@fairpoint.net. Visit www.afewdollarsmore.com for more of Bill's insights.



0 Comments
Tags: Congress, overseas, economy      
News Headlines
Warren: Grit, Determination Will Get BCC Graduates to Next Goal
Northern Berkshire United Way Drive Hits Half-Million Mark
BHS, Medicaid Insurers Set Enrollment Fairs
iBerkshire Tag Sales: May 29-30
St. Stan's Pupils Learning How Gardens Grow
United Independent Party Director Launches Bid For Pittsfield Council
NYC Teens Find Connection With Norman Rockwell
Williamstown Town Manager Finalists Named
Adams Community Bank Celebrates Staff
Lanesborough Sets 2015 Town Meeting Warrant

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 (230)
Archives:
May 2015 (6)
May 2014 (1)
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:
Crisis Congress Commodities Fed Recession Banks Euro Europe Federal Reserve Debt Ceiling Currency Fiscal Cliff Deficit Greece Stocks Jobs Debt Japan Retirement Selloff Energy Election Stock Market Economy Rally Pullback Housing Taxes Metals Interest Rates Bailout Europe Markets Stimulus Oil
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: Why Are Interest Rates Rising?
The Independent Investor: How Will Wall Street II Play on Main Street?
Recent Entries:
The Independent Investor: Man's Most Expensive Friend
@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


BCC Commencement 2015
U.S. Sen. Elizabeth Warren gave the keynote speech at...
North Berkshire Relay for...
The 10th annual Northern Berkshire Relay for Life was held...
Lacrosse: Hoosac at Wahconah
The Wahconah boy's lacrosse team earned its 10th win of the...
Lacrosse: Monument at Taconic
It was a fourth quarter timeout called by the Monument...
St. Joseph Prom 2015
St. Joseph Central High School held their 2015 Prom at the...
Third Thursday May 2015
Pittsfield's monthly summer street festival, 3rd Thursday,...
Girls Inc. Awards 2015
Girls Inc. honored scholarship recipients at the annual...
Williamstown Memorial Day...
Williamstown marked Memorial Day with a parade on Main...
Cheshire Memorial Day 2015
Cheshire residents, veterans, and special guests follow the...
Adams Memorial Day 2015
Adams observed Memorial Day with a parade and a ceremony at...
North Adams Memorial Day 2015
Residents, veterans, and guests met at the Veterans...
Clarksburg Memorial Day 2015
Clarksburg held Memorial Day observances at Town Hall with...
Pittsfield Memorial Day 2015
Pittsfield celebrated Memorial Day on Monday with a parade...
Wahconah High Prom 2015
Wahconah Regional High School held its 2015 Prom at the...
Lacrosse: Wahconah at Taconic
Wahconah won over Taconic 13-3 Friday afternoon.
Lanesborough Memorial Day...
Lanesborough celebrated Memorial Day Sunday with a parade...
BCC Commencement 2015
U.S. Sen. Elizabeth Warren gave the keynote speech at...
North Berkshire Relay for...
The 10th annual Northern Berkshire Relay for Life was held...
Lacrosse: Hoosac at Wahconah
The Wahconah boy's lacrosse team earned its 10th win of the...
Lacrosse: Monument at Taconic
It was a fourth quarter timeout called by the Monument...
St. Joseph Prom 2015
St. Joseph Central High School held their 2015 Prom at the...
| 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