market

Markets Steam Ahead, Hiccup Notwithstanding

We just finished the best quarter in the market since 1998, and the best two quarters in a row since we came out of the 1987 market crash in a mere six months, according to The Wall Street Journal online. Granted there’s a lot to make up for – the market is still 31% off its October 2007 highs. But we’re up 48% from the March lows, 11% for the year, all in all beats the alternative. The last few days went down a bit, but every rally has its profit-taking moments. We had one in early July and then bounced right back. Let’s hope that’s all this is.

We are still going to have some bad economic news (like the unemployment data last week) and must accept that this recovery will be slowish. But in many ways, as I have said many times here, it’s up to us. Expectations drive a huge portion of the economy. If we get positive about the future, that will make the future more positive. Not to get all Tony Robbins on y’all, but it’s what they taught us in biz school. The next boost for confidence will probably be the arrival in the next few weeks of everyone’s quarterly 401(k) statements showing, hopefully, a solid increase in their retirement money. With the IPO market waking up, housing starts staying pretty strong, yes the stimulus money having some effect and the markets continuing their upward trend, I’m glad I renamed our site! Let’s just hope our government spending now gets into control so we don’t get hit in a year or two with…well, you know what…