S&P 500 1,108.20 -1.24%
Click here for the Weekly Wrap by Briefing.com
Bottom Line: Market action last week was mostly negative as insurance and base metal stocks led the major indices lower. Considering energy's continuing rise, a tightening of the Presidential polls, the debacle in the insurance sector and mixed economic data, the major indices relatively muted declines likely disappointed the Bears. NY Attorney General Spitzer's attacks on the insurance industry, while warranted, unfortunately resulted in major losses for investors and will likely cause future job losses in the industry. It is becoming harder and harder to find sectors to investment in that are not under major legal duress, which is a significant burden on the U.S. economy. In my opinion, executives need to be held more personally liable for their illegal actions and the companies themselves less liable, to minimized job losses and investor pain. The carnage in the base metal stocks, as a result of reports that China's economy is slowing, appears overdone to me. Barring a recession brought on by higher energy prices, which I do not currently anticipate, these stocks shouldn't head substantially lower from current levels. On the positive side, most measures of investor anxiety rose, interest rates fell, the CRB Index declined, technology stocks outperformed and the advance/decline line only fell modestly.
No comments:
Post a Comment