As this is written on 10-21-2011 the equity values of Corporate America, as measured by the S&P 500, are almost exactly where they were one year ago. It has been one of the most volatile trends I have seen in my thirty years as a wealth manager.
On October 4th, 2011 the S&P 500 opened at 1,097.42. As I write this the S&P 500 stands at 1,233.93, a 14 day gain of +12.44%. Yet, none of the problems we all read about have gone away.
I think we are witnessing a "short covering" rally before options hedging expires today. I will drill into the detail in this months issue of The Seven Signs of a Changing Economy. In the meantime, this is a significant bounce up in value, but as of now it is not a trend. If and when the trend develops, up or down, we will start to invest our cash position.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
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