Economic Numbers
- The March Philly Fed Business Outlook reading fell to 8.5 from 12.5 and below the estimate of 10.3. New Orders and Shipments also dropped from the prior month.
- March Existing Home Sales fell to 4.48 million, below the estimate of 4.62 million
- Weekly Initial Jobless Claims increased yet again to 386k, well above the estimate of 365k; last week revised to 388k from 380k; continuing claims jumped 26k to 3.27m
Europe Again
- Yields on Spanish bonds continued their ascent higher
- French yields also rose on rumors of a potential downgrade
- The Spanish stock index, the IBEX 35, broke below 7100 at one point for the first time since March 2009
In Perspective
- Putting everything that occurred this week and the last month into perspective is the only way for 99% of investors to succeed. Keep in mind the S&P 500 is less than 3% from a 4-year high and this has been in the face on continually negative news out of Europe.
- Earnings have not been blockbuster, but they are definitely good and that is one major reason the market has not fallen harder on the European news.
- Valuations based on no growth to modest growth this year for the S&P 500 has the market undervalued. If you want to be in the market in the next 10 years, you want to be in the market now!!
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