Friends
The market seems to have run into some resistance at the 1130 level on the S&P 500, but a little breather might just be what this market needs at this moment (though the futures look to be up this morning). It has been a nice ride so far here in September with the Dow up about 6.5% for the month and the S&P up about 7.15%. The economic picture remains sketchy at best, as weekly jobless claims got a little worse this week after a couple of weeks of improvement. News from the Federal Reserve was uneventful as the “all in” stance continues to be the message from Mr. Bernanke. In other words, the Fed will do anything they need to do to get this economy moving in a positive direction. Remember, as I have reminded you for years now, don’t fight the Fed.
We don’t usually like to get political in this forum, but one can’t help but notice the mounting departures of President Obama’s economic team. This week, the news of Larry Summers (Head of the National Economic Council) leaving his post along with the previous defections of Christina Romer (Chair of Council of Economic Advisors) and Peter Orzag (Director of the Office of Management and Budget) seems to indicate that the President is not satisfied with his team of economic advisors and changes needed to be made. I think the public came to this conclusion some time ago.
Gold continues its climb, as in pre-market trading it has crossed the 1300 level this morning. Gold seems to be in a sweet spot right now, as it is viewed as a calamity hedge should the dollar continue its recent decline (which has been good for stocks, by the way). On the other hand, if economic activity starts to percolate, and inflation rears its ugly head, gold is seen as an inflation hedge. As always, I begin to get worried when a trade gets crowded, and the gold trade seems to be a packed house right now.
This is a quiet time for companies as we near quarter end, but next month we will focus on earnings again. That, along with the upcoming employment report will set the stage for October, but the November elections will remain a point of interest for investors. The question of where exactly taxes will be next year is on everyone’s mind, and investors as well as business owners, will be watching these elections very closely.
Once again, I want to thank everyone for their support and kind words over these past few weeks. CHJ Wealth Management is off to a great start, and it is all because of you. We look forward to continuing the wonderful relationships we have with all of you, and we’ll be here at the helm managing your money and guiding you through these “interesting” economic times.
Have a nice weekend everyone.
