We were going to have a knee-jerk negative reaction to the Fed's decision no matter what, with so many different opinions on what should be done, but I think today, it may be that people are looking more closely at the statement and see it as the Fed saying things are slowly going in the right direction. |
We're looking at the first day of the rest of the year and it's looking like more of the same. On an up note, there is more discussion that maybe we have worked through some of the intense negativity of late and that the disconnect between the economic data and market action may end soon. |
We're seeing the reality of a market that does not have any great conviction. Anyone who expected a linear, 'We're off to the races' kind of tone after last week was mistaken. |
What companies report now is less influential than what they say about future quarters. |
With Iraq off center stage, there is more good to focus on than not. The prospect of a double-dip recession will fade, I think. |
You had a terrible day Friday with the market pricing in the reality of these events and you have a continuation of that reaction now. There are no surprises. It's pretty much across-the-board negativity. |
You'll see markets continue to do the Cha-Cha, moving higher, but paced by brief retrenchments. It's not going to be as good as last year, but I think 2004 will still be a good year for the stock markets. |
You're really going to need to see some bellwether companies saying the quality of earnings is improving and that it's due to growth, not cost-cutting, before investors are going to be willing to set aside the skepticism. |