It looks like the over all market is actually up 0.7% as of last weeks end. The largest news is that oil prices are up to levels from last October 2008. Oil prices are up to around $72 a barrel with a possible rise in oil demand.
Not much new news this week as well. Exports declined quicker than imports with a trade deficit increase by 2.2%. Good news is that retail sales rose for the first time in three months last May. Jobless claims were at the lowest levels in Jan 09, but continue to climb currently to just under 7 million.
First quarter earnings for the S&P Index companies fell almost 40% from 2008 Q1. Companies’ new challenges are to regain profitability. The Labor Department reported that there was an increase of 1.6% of non-farm business productivity. However, most of this increase can be due to the reduction of companies’ work forces.
So far March 9th looks like to be very near the bottom of the bear market and some may consider profit taking at the market has climbed back up to present levels.
Overall debt is still a major driving force behind the current crisis and we need to maintain caution. GDP may still be lower than the past few years. Asset diversification and proper allocation still remains to be the key investing strategy in weathering this stock market.
- written by Bob Feazall
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