Category: Investment Strategy Today

The current economic condition is good almost everywhere in the world. The USA is looking at a continuation of a recovering housing market, good employment conditions, improving personal income levels and reasonable trade conditions.

The market is on track for an above average year with the DOW Index already reaching 6.85% (S&P 500 Index at 6.81%). Unfortunately, well behind the large cap index is Mid cap at 4.52%and Small cap at 1.61%. At least the Small cap market is remaining in positive territory, but it has struggled the entire year.

Markets should move in predictable and steady patterns where rising markets increase just a little bit each day. Then over a month or year period we can look back and see how each day moved along a nice path up or down. It is a shame it doesn’t operate this way. Reality has a way of surprising investors daily. Just look at yesterday. After weeks of sideways movement, the world’s markets all responded in a positive way.

International markets were big disappointments yesterday with declines posted in all areas. China took the largest hit dropping 1.72% to 8.90% for the year. Domestically, the U.S. market continued along previous directions with give ups in one area to be offset by gains in others. Large cap gave up 0.30% while mid and small cap advanced 0.04% and 0.09%, respectively. Just slightly half of the sectors lost ground while the others advanced. And, the bond market flipped again between high yield and more stable debt areas. It is a repeat of the previous several weeks as a wait-and-see condition remains in place.

Snap Shot Day