Welcome to the extended version of the BAM Market Note. We are not bloggers by nature but have had clients and friends inquire about our thoughts on the market in between our newsletters. The number and content of posts will likely be determined by the conditions of the markets and the interests of our readers. We would greatly appreciate your feedback and comments.
Thursday, August 30, 2012
ON A KNIFE EDGE
The markets sold off today on some less than inspiring economic news and lowered expectations of what Ben Bernanke may or may not say tomorrow. The Dow sold off to the psychologically important 13,000 level and the S&P fell to the 1200 level. The 1200 level is both psychologically and technically important. A breach below this level would set the stage for lower prices. The low volatility that has characterized this market over the last couple of weeks was interrupted today and we may well have another volatile day tomorrow as Bernanke provides clues as to the Fed's thinking. While many expect nothing to be done tomorrow, the contrarian in me wonders... We'll know tomorrow. Bernanke may well want to wait to survey the upcoming jobs report before the next scheduled FOMC meeting in two weeks. If the Fed is going to announce any new measures, the September meeting would be the logical time as October gets even more politicized. Again, we'll see. We are watching closely and will make appropriate portfolio adjustments as the market dictates.
Subscribe to:
Post Comments (Atom)
Unquestionably believe that which you said. Your favorite reason seemed to be on the web the easiest thing to be aware of. I say to you, I definitely get annoyed while people consider worries that they plainly do not know about. You managed to hit the nail upon the top and also defined out the whole thing without having side-effects , people could take a signal. Will probably be back to get more. Thanks
ReplyDeleteToday, while I was at work, my cousin stole my iphone and tested to see if it can survive a thirty foot drop, just so she can be a youtube sensation. My iPad is now broken and she has 83 views. I know this is entirely off topic but I had to share it with someone!
ReplyDelete