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Struggling Forward

January 6, 2012 – 5:51 pm

In December 200,000 new jobs were created and the unemployment rate fell to 8.5%. Those were better than expected numbers yet the stock market fell this morning. Many are asking why?

The answer seems to be in the rise in the U.S. dollar against other currencies. For several years a rise in the dollar has meant a fall in our stock market. The dollar has gone up this week and the stock market has struggled to follow suit.

Even with the better than expected jobs report the traders and investors are very reluctant. For months we have seen a net redemption in mutual funds. Private investors have been moving away from the equity markets for some time. The continued oppressive worry about Europe will continue to put pressure on investors.

We are not out of the woods but we are crawling our way to clearer pastures. Let’s hope the headwinds from overseas do not push us back into the forest. It’s been a struggle enough and we don’t need more challenges to overcome.

Good Trading
Steve Peasley

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