(As of 7:25 am PST)
Markets have started with
modest gains this morning. Earnings have
been mixed on the few reports left to come out this quarter. Asia and Europe are steady, but economic data
from Europe continues to lag and it becomes more and more apparent that Europe
will not pull out of recession anytime soon.
Gold is on the down side of a roller coaster run, giving back most of
yesterday’s gains. Oil has drifted down
a bit, but is surprisingly resilient in the face of large inventories and
limited demand. Look for some significant downward pressure on the price of oil
over the next few weeks. Interest rates
are creeping up and the US currency is stronger, in anticipation of a reduction
in QE3, the Fed’s mortgage buying program.
In general, expectations seem to be far ahead of reality in terms of our
economic recovery and the economic data supporting it. As we press on into the summer doldrums
expect a market pull back as investors assess marginal economic data.
No comments:
Post a Comment