Wednesday’s markets initially sold off and tested the low point we saw on Tuesday. However, Tuesday’s low held and the market rallied strongly. We believe this marker a near term low, not the bottom from which a major bull market will start. The tax stimulus and Fed action is welcome, but may act more as a “band-aid”; however, it is calming investor’s fears. There’s a small rally going on right now for 5-10%, which is giving us the opportunity to make adjustments, raise some cash and wait and watch for a sign of a major bottom.
This week, unemployment claims were down. Next week, we will be watching for the GDP, the Fed meeting and jobless claims.
On Monday, our Chairman, Drew Kanaly, appeared on the Fox Business News Channel and on Wednesday, he was featured on Bloomberg TV’s “Final Word.” Click on the links to hear what he had to say about the markets.
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