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A Breather

November 12, 2010 – 6:21 pm

There was little economic news this week but we always have our weekly jobless claims report which showed a fall of 24,000 people claiming benefits. The overall level is that there are 435,000 individuals collecting benefits. That is the lowest level in two years. However, I wonder how much of that fall is because of expiration of benefits for some people. Of course the government does not count it that way. Despite the less than clear view, the overall trend is in the right direction.

The G20 meeting, so far, has produced very little or nothing but a lot of expensive junkets for the various countries traveling to South Korea as their politicians shake hands and smile but get nothing done. That is to be expected. I am not sure anything concrete has ever come out of these kinds of meetings, at least anything of significance.

The market is experiencing a small correction, something else to be expected after the recent weeks of strong growth. The election is behind us, the Fed meeting results are in the past and the earnings season is done. There was bound to be some letting of air out of the inflated market prices.

These corrections are very good for the health of the future market. They provide opportunity. The question is how many will take advantage. Most individual investors are under invested in stocks. That might change then again it might not. One thing is certain: many people are tired of the ultra low returns on their money market funds, savings accounts and CDs.

Good Trading
Steve Peasley

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