The Beat goes on. It’s like the Sonny & Cher song. The world is a busy and confusing place. Naturally, good news should be good news. But for investors it isn’t always the case. Earnings have been mixed, Tech remains strong. That’s key. International issues are far from good. Central Banks in Europe and China continue to aggressively stimulate their economies because growth is so sluggish. Our Fed decided not to raise rates last month because of concerns overseas. Quantitative Easing has been a key driver in this 6-year Bull Market. The QE drums keep pounding rhythms to the Market’s brain. The Beat goes on….
October has been a rocket ship for stocks, taking the S&P and the NASDAQ from the depths of the correction back in the green for the year. The DOW is still in the red for 2015. Earnings this week were all about the Tech Titans, and they impressed. Amazon and Google soared off really impressive earnings numbers. Innovators continue to innovate, and their stocks are leading the charge. The price action has been swift and volatile. It’s been anything but normal. There’s been short-covering, there’s been panic selling, there’s been panic buying as well as a lot of spectators watching stock prices put in their strongest month in 4 years. The Beat goes on…
Amazon keeps showing they’re the new super mart, uh huh
Little girls still break their hearts, uh huh
And men still keep on marching off to war
Digitally, around the globe, everyone can now see a baseball score
The Beat goes on….
The S&P declined 8% in August and September in a very rough Summer. October has nearly erased those losses, with a 7% gain. So far, it’s been the strongest month for stocks in 4 years. It was October of 2011 when the S&P soared 10% on the month. 2011 had many similarities to 2015. But there’s a great deal of confusion and uncertainty around. The Fed has made things very confusing. It’s not clear what is going on in China, but another rate-cut overnight is sending a clear message that the Chinese government will do what they need to in support of their economy. That’s been the same focus of the ECB, which set things up for another round of QE in December.
Grandmas sit in chairs and reminisce
Boys keep chasing girls to get a kiss
Tesla’s proving cars keep going faster all the time
Most American’s can’t afford one. Bums still cry, “Hey buddy,
have you got a dime?”
Bad news is good news? Good news is good news? Good news is bad news? We shall soon see.
The Beat goes on. The Beat goes on. La de da de de, la de da de da…
Have a nice weekend. We’ll be back dark and early on Monday.
MF
