I remain pretty confident that we will not retest lows or break through the floor set on March 9. Liquidity continues to return to the market slowly, and investors are cautiously buying more and more every week. Of course a lot is riding on the Treasury Department's public/private plan to unwind the toxic assets in the financial sector, and we will have to wait to see how that plays out in June. I remain very confident that we are seeing the recovery take shape right now and stocks will continue to move higher in the long term.
We may indeed see a bit of a pullback in certain stocks int he near future. Consider the fact that shares of both AIG and Bank of America have doubled in the last four weeks. While things are indeed looking up, gains like this cannot last considering the massive government influence over each stock and brutal balance sheets each has shown.
I remain of the opinion that the worst has been seen as banks are now raising capital without government assistance. I believe the economy will slowly turn to positive in the fourth quarter. Hang in there the volatility will continue.
Dustin Padgett, CFP
Branch Manager
No comments:
Post a Comment