Contact Us Disclosures Blog
 
Make an Appointment Contact Us Podcast Blog
Market Commentary Audio Archives Book Shelf InvestAbility Center

Where’s the Relief?

July 25, 2012 – 5:12 pm

European woes and weaker than expected new homes sales this morning for June has put downward pressure on the market so far this week. Talk of Greece exiting the EU and/or needing another bailout package of some kind hit the headlines as other indebted countries in that part of the world struggle with high interest rates to refinance their debt. It seems that Europe is never far from being in the headlines though the stock market reaction to it is muted this summer unlike last summer.

However, the U.S. economy is getting weaker and that is adding a new dimension this summer. Last summer we had softness in the economy but that had a cause, the Japanese earthquake and flood, which was temporary in nature. This summer it is just weakness. There needs to be a catalyst of some kind to shake ourselves out of this downward funk.

Housing seems to be the only small bright spot in the data recently but even that took a hit this morning with June’s new home sales falling well short of expectations. May’s numbers were revised sharply higher, more so than the fall in June, but the market took a mental hit with the weak numbers for June.

QE3 cannot come soon enough and even then will it be strong enough to kick start the economy back onto the slow growth path we have been living with since the recovery from the recession? Maybe a solution to the fiscal cliff would help. That is probably too much to ask from our bickering politicians.

Good Trading
Steve Peasley

Post a Comment