August through October, you historically have weakness. Even with a number of supportive factors in place right now, it's likely that these seasonal factors will kick in. |
But in the short term, there's a lot of uncertainty, about terrorism, the presidential election and interest rates. |
I doubt the advance is done for the year. There are a lot of seasonal characteristics that are in play and there is still a lot of liquidity. |
I think we've gone through this consolidation phase over most of the first part of the year, after last year's gains. I think it's natural to see that, but it's been difficult for investors. |
One attraction of Latin is that you can immerse yourself in the poems of Horace and Catullus without fretting over how to say, "Have a nice day." |
The market had gotten oversold and so you've got this tech rally at the end of the week. |
The strength of the GDP report, the better-than-expected fourth-quarter earnings, are all reinforcing the idea that the economy and corporate profits are showing strong growth, and you are seeing stocks respond, |
The tone is positive, and I think that will continue for the next few days. |
There are many reasons to be optimistic -- corporate earnings have been strong, with more than 70 percent of companies in the first quarter exceeding estimates. The employment picture seems to be improving, |
Until we move out of this transition period, and get some clarity on these issues, the market is going to remain very volatile. |