December 16, 2011
Euphoria & Hysteria
Seems nearly every day the market rises or falls on whether Europe is going broke or about to be saved. Trying to invest based on news out of Europe makes about as much sense as buying or selling based on what color necktie Nicholas Sarkozy is wearing. Despite all the hoopla, a focus on the slow-but-steady recovery of the US economy will in my opinion serve investors better.
IPOs: Busy & Busier
The Initial Public Offering market has been sizzling this year, with a large number of companies going public from the technology and energy sectors. Household names that have made their debut include Zipcar, Groupon, LinkedIn, Michael Kors, and locally, Manning & Napier. There are whiffs of a tech bubble about the IPO market lately, and I do not disagree. And while each company should be judged on its merits rather than as part of a group, the group view (or herd mentality) has a tendency to move investors, and investors move stock prices. The best advice when it comes to an IPO: Caveat Emptor.
We bid farewell this week to Amy Jewell, a member of our first-rate administrative staff, who is moving to the Albany area. Good luck Amy, we will miss you.
The market will await a traditional "Santa Claus Rally" while investors review their portfolios and use capital losses to reduce their tax bite. Look for a quiet week with little in the way of economic news. But what little you see I expect will be positive.
(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).