Dear ,
A recent article from the New York Times that was reprinted by CNBC, likened the late-2000s recession to an earthquake, and recent volatility to aftershocks. The article said: "Like earthquakes, financial crises seem to be accompanied by aftershocks, like the one we've been living through this week. They can feel every bit as bad as the crisis itself. But economic history and academic research suggest they can set the stage for a sustainable recovery - and eventual sharp stock market gains."[1]
That's one view. Now let's hear from the other side.
Markets Being Irrational, So Stay Away From Stocks: Bove. Dick Bove, banking analyst and Vice President of equity research at Rochdale Securities, takes the exact opposite view. He views stocks as extremely dangerous and not the place to be. "In a lengthy and detailed broadside on banking regulations, Federal Reserve actions and the peril that awaits, the Rochdale Securities vice president of equity research asserts the US "is as bankrupt as the Europeans" and headed for trouble unless a massive bailout fund is created. He reiterates a recent call that investors should stay away from stocks until the dust settles."
It's no secret that dizzying stock market moves in recent weeks have been difficult to stomach. Think of all the events we've had to face leading up to this - controversy in Washington over the debt ceiling, Standard & Poor's downgrade of America's prized credit rating, renewed fears about European debt, and a gut-wrenching plunge in the stock market. The uncertainty of everything culminated in the wild ride we took last week.
To recap: On Monday the Dow Jones Industrial Average fell almost 635 points, then rose nearly 430 points on Tuesday, only to see another drop of almost 520 points on Wednesday. Helped by some positive earnings results, the Dow soared 423 points Thursday and another 125 points on Friday. By week's end, the benchmark index had closed at 11,269 and shed only 1.5% for the week.[2] The S&P 500 Index logged similar performance. You might want to take a deep breath after reading this paragraph.
Do we expect a measure of volatility to continue? There is a good possibility that it will in our view. As long as confidence in the global economy and government policymakers remains shaky, markets are likely to be volatile.
To quote an old Kenny Rogers tune, "You've got to know when to hold them and know when to fold them..."
Do you know which course of action to take? If not then please join us tomorrow night for the Reames Financial presentation - Investing in Times of Global Uncertainty! We will give you our view of whether it is time to "hold them or fold them". Here are the details:
Where: M-Tec Center (Part of KVCC)
7107 Elm Valley Dr.
Kalamazoo, MI 49009
When: Tuesday August 16, 2011 @ 6:30 PM
Phone #: 269-349-3966 or 1-877-349-3966 to reserve your
spot.
(You can also respond to this email if that is easier for you!)
Please invite a friend!
As you know, our presentations are always informative and entertaining. Please feel free to invite anyone who you think cold benefit from hearing this presentations.
Looking forward to seeing you on August 16th!
ECONOMIC CALENDAR: Monday - Empire State Mfg Survey, Housing Market Index Tuesday - Housing Starts, Import and Export Prices, Industrial Production Wednesday -Producer Price Index Thursday - Consumer Price Index, Jobless Claims, Existing Home Sales, Philadelphia Fed Survey, Leading Indicators
|