CI Outlook - Archives

May 2008

May 5, 2008

Last month we wrote that we would await higher volume in the stock market before committing to the unfolding rally.  Since then the market has rallied to its resistance level of around Dow 12,800, and held.  Although we wanted to await heavier volume to confirm a change in market conditions we became convinced that conditions had changed, and waiting, was no longer prudent.  Therefore we sold the inverse ETF and committed more funds to the technology sector.  At the same time we purchased shares in Merrill Lynch as a shorter term play on the improving financial sector. 

We made these adjustments because we believe the worst is over for the credit markets.  The price collapse of many financial stocks in January and the demise of Bear Stearns in March likely marked the end of the panic phase of this decline.  The economy may show further weakness.  However, we believe the stock market is now strong enough to look over that valley, and begin discounting the monetary and fiscal stimulation being applied by Washington.  Evidence of that spreading belief is starting to appear in the shift out of money market funds.  Over the last four weeks money market balances have declined by about one trillion dollars.   Should the trickle turn into a more substantial flow we believe that cash will provide fuel for a sustainable advance in stock prices.  This will be the increase in volume we have been waiting for, and although it is slower in coming than anticipated, we believe the move higher has started.

As always we want to thank you for your continuing patronage and urge you to call us with any questions or comments about your investment account.


CJ Brott               Karen Burns

 


July 2014
JUNE 2014
May 2014
April 2014
March 2014
Feburary 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
aPRIL 2013
March 2013
February 2013
January 2013
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
Yead End 2007
December 2007
November 2007
Third Quarter 2007
September 2007
Second Quarter 2007
June 2007
May 2007
First Quarter 2007
March 2007
February 2007
Year End 2006
December 2006
November 2006
Third Quarter 2006
September 2006
Second Quarter 2006
First Quarter 2006
Fourth Quarter 2005
Third Quarter 2005
Second Quarter 2005
First Quarter 2005
Newsletter Year End 2004
Client Newsletter 2nd Quarter 2004
First Quarter 2004
Newsletter - Year End 2003
It Ain't Over 'Till It's Over
Newsletter - 2nd Quarter 2003
Newsletter - 1st Quarter 2003
Newsletter - Year End 2002
Newsletter - 3rd Quarter 2002
Newsletter - 2nd Quarter 2002
Newsletter - 1st Quarter 2002
Newsletter - 4th Quarter 2001
Newsletter - 3rd Quarter 2001
Newsletter - 2nd Quarter 2001
Newsletter - 1st Quarter 2001
Newsletter - Year End 2000
Newsletter - 3rd Quarter 2000
Newsletter - 2nd Quarter 2000
Newsletter - 1st Quarter 2000