Mr. Market Seeks Support

The market low of S&P 500 = 676.53 on March 9th seems a long time ago, especially in earnings season. It was an interesting first quarter, if for no other reason than to see the earnings reports trickle in with various degrees of bad news. As I see it, the good news for investors is that, as Mr. Market seeks support, he is finding it. The bears are unable to drag down the market with dismal earnings reports from most of the reporting companies to date. It appears that “the expectation bar” has been set so low that even minimal profits are pleasing investors. We are seeing this played out by trading days that might open weak, but often finish strong in the last hour of trading. “Higher highs and higher lows” is the trademark occurrence of a bear market that is losing steam. Remember, market recoveries often precede economic recoveries by 8 to 10 months. This “recovery” topic will be among several at the MAY Fireside Chats.

We have heard your requests: you would like more timely information than a quarterly newsletter can provide. With the market cycles occurring in more volatile and tighter time frames, we have decided that it is in our client’s best interest to publish monthly newsletters beginning June 2009. A PDF version will also be available. So, this is the last of our “hardcopy” editions. Because we will not need time at the printer and mailing, we will be able to offer you more content that is right up-to-the-minute with market activity. These will be electronic in the form of HTML e-mail. The reduced usage of printing, postage and envelopes is our contribution to a “green environment.” We are excited about our new format! We welcome your thoughts on this now and with the July 1st issue.

Even as we move to a monthly newsletter, I will continue my periodic “market condition updates” via e-mail. If you are not receiving those e-mails, please call our office to be added to our distribution list. Or, e-mail Lory at lharris [at] weg1 [dot] com. Rest assured that your accounts are being closely monitored by Chris and me (and our team) as we continually evaluate how to best serve each of our client’s investments.

Until next time,