Market Starts The Week On A Positive Note
There is little news this morning, on this holiday shortened trading session. The biggest piece of news is that Merrill Lynch (MER) got a $6.2 billion infusion from the Singapore govt. and Davis Selected Advisors. This is helping boost the financials.
Asian markets were up sharply overnight, and the Yen is a bit lower again today. The 10-year yield has bounced all the way back to 4.19%, reflecting an easing of recession fears. And oil is trading down on the day, but still up at $92.50.
There are only 4 1/2 trading days left in 2007. What a wild year. For all its volatility, the S&P 500 is currently up only 5% ytd. Although if this week is nice to the bulls, we could see that figure move a little higher before 12/31.
Now is the time of year where you will hear all sorts of predictions about what's in store for 2008. For the most part, don't listen to them. Forecasting the market that far in advance is full of folly. But that doesn't stop people from participating. All you have to do is go back and look at predictions from year's past to see how hard it is to know what the market has in store for investors.
A better bet is to stay alert, monitor the markets, and take it one step at a time. If the market shows strength, hang in there. And if the market flashes signs of trouble, then you can always get more defensive. I am still watching closely to see if the market can make new highs in the near future. If not, that would market a chance in character for this market. But I continue to give it the benefit of the doubt.