August 12, 2011
I love my job and generally look forward to weekends no more than any work day. But I will be happy to get a break over the next couple of days. We have had an unusually volatile week in the stock market It started in earnest Tuesday last week, with the Dow down 265, over 2%. Last Thursday we were down 512 points, but Friday was quiet. Monday brought unwelcome fireworks - down 634. Then Tuesday up 429, Wednesday back down 519, and yesterday back up 423. I'm tired already and today hasn't even started.
There was plenty of business news to stir the pot. Washington punted on dealing with our national debt, in Europe the debt demons lurched from one country to another, threatening the Euro (and global economic stability). In an effort to pour a little oil on roiling markets, the Fed made an unprecedented move, stating that interest rates would be kept "exceptionally low" through mid-2013. In over 30 years of following Fed policy I have never seen such a term-certain pronouncement. And the week's not over.
Meanwhile individual investors are dealing with the sturm und drang and still have to do the laundry and walk the dog. Long term investors with the correct perspective have mostly sat out the volatility, bargain hunters have made cautious forays to buy quality at low prices, but plenty of people have anxiety over the state of the markets.
I have seen plenty of up-and-down over the years, and remain long-term bullish on America. I plan a couple of days relaxing in a hammock over the weekend and we'll see what Monday brings.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).