"No Ray of Sunshine?"
According to one Wall Streeter quoted in a story posted last evening by the Wall Street Journal:
"We're at month-end, the Dow is down, and there's no ray of sunshine," said Mr. Cheslock,” managing director at Cohen Capital Group, LLC. (emphasis added)
“There's been too much back-and-forth, it's a wishy-washy market," said Debra Brede, president of D.K. Brede Investment Management Company. "One day you think [the government] is going to do something serious to help the banks, and the next day it's not such a great idea. Markets hate uncertainty, and it's not clear it's a good plan. We need to get these banks cleaned up and move forward." (emphasis added)
Since it’s the last day of January, it’s worth noting what’s happened in the stock market since that’s an indicator of the nation’s economy. The Journal points out:
“Historically, stocks' January performance has been thought of as an informal indicator for the market's direction the rest of the year. When the S&P declines in January, the index loses an average of 2.4% in the next 11 months, according to data going back to 1950 from Ned Davis Research. When the S&P climbs in January, the index posts an average gain of 12.3% in the next period.”
So what did the stock market do in January? Here is how the newspaper opened their story:
“Stocks wrapped up their worst January on record with a final plunge on Friday.
“The Dow Jones Industrial Average finished January down 8.84% on the month. Perviously, the worst January for the Dow had been that of 1916, when it fell 8.64%. Friday, the Dow dropped 148.15 points to 8000.86 after briefly dipping below the 8000 mark. The Dow has fallen five straight months and in 12 of the last 15.”
Just wondering? Are investors unwilling to see any more of the economic plans of the new administration of President Obama and the current U.S. Congress?