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 29, 2013
WEAK BOUNCE
To this point, the markets have only managed a weak bounce from oversold prices. This does not bode well for the short term and the markets will have to stage a rally soon or the bears will take full control and we could easily see another quick 2-5% drop in equity prices. The economic news out today was generally positive led by a better than expected GDP report. Tomorrow we will get another round of economic indicators. It is hard to know if one should cheer for positive data (and risk the Fed tightening up on their liquidity) or cheer for bad data so that the Fed will continue to pump money into the system. In any event, the markets are weak here and poised for another potential break-down. Extra caution is warranted until things settle down a bit.
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