The week in review:
The financial markets once again experienced a sell-off at the end of the week as concerns over the global economy once again take center stage. During the last two months, there have been 19 trading days with a 3% move in the Dow Jones Industrial Average. It had previously taken 6 years to see 19 days with a 3% move.
Home loan rates improved substantially at the beginning of the week, but due to the sell-off ended the week where they started out.
What to expect:
It will not be a stable and calm week. The Fed is expected to drop short-term rates once again at their meeting on Wednesday and their comments about the situation could move the markets in either direction. There are also several economic reports due out at the end of the week. One is the Gross Domestic Product report which will be looked at for signs of recession and the other report will give us an idea if inflation is increasing or subsiding. Hold on!
Breg-ometer:
Next 7 days: I recommend locking-in as it appears markets could follow through with sell-off from the end of the week.
Next 30-90 days: Neutral
Courtesy of:
Bob Bregitzer
[where: 30339]