Weekly Wrap

It looks like calls for this market rally dying earlier in the week were a bit premature. Like I've been saying, if investors open their minds, they will come to know that this rally is not dying. People are just beginning to believe in (or forget about) our corrupt system again.



Data has consistently been pointing to a slow-growing economy, not a faltering one, and corporate profits and cash positions have remained in the upper hemisphere for months. Unemployment levels are slowly but surely falling, and consumers are continuing to spend. But, whether intentional or not, the financial news media has continued to report bearish sentiment. That is - until today.

According to a Bloomberg News report at market close -

U.S. stocks advanced, extending the best start to a year for the Standard & Poor’s 500 Index since 1989, after a report showed that employment growth topped estimates and the jobless rate unexpectedly fell to 8.3 percent

The S&P 500 Index gained almost 32 basis points for the week, closing up 2.2% at 1345, and the Nasdaq Composite Index reached an 11-year high, closing up 3.2% at 2906. Wall Street is joyous!

But most importantly, and what's not being reported as having an impact on the markets, is the fact that this is an election year. There is absolutely no way that the current administration is going to let both the economy and the markets falter, and will continue to pull out all strings to ensure success.

I'm still bullish, holding long, and expecting even more gains to appear on the near-term horizon.

Related Links -

Briefing.com: Weekly Wrap for January 30, 2012
The Vanguard Group: Economic Week in Review

RIP: Don Cornelius

A lot of younger people probably don't know that Don Cornelius was an American television show host and producer who is best known as the creator of the nationally syndicated hit dance/music franchise Soul Train, which he hosted from 1971 to 1993. According to an AP release today - Los Angeles police say Cornelius has died in California of a self-inflicted gunshot wound.

For the past week, I just happened to be thinking about Don and Soul Train, that great TV show that he created. Ask me why I just happened to reflect back on the show, and I can't explain the reason why it came into my thoughts. But, this isn't the first time I've had such unusual thoughts about someone or something right before an important event involving those thoughts occurs. Who knows? Maybe it means something, maybe it doesn't.

But, what I do know is that while recently reflecting back on Soul Train, I found this video that I was going to use to make a point about where both the economy and stock markets are heading in the near future. On the other hand though, maybe it came into my thoughts because it represents what the future holds after we get through this recent period of worldwide turmoil.

So, in memory of that great American entrepreneur, Don Cornelius, I present you with something that "perhaps" he wanted everyone to see. You've left a great legacy, RIP Don.

OWS: Oakland

You've got to hand it to those Occupy Wall Street protesters, they're not going to be deterred, even when the situation escalates to violence. According to an excerpt from a post on their website -

Yesterday, Occupy Oakland moved to convert a vacant building into a community center to provide education, medical, and housing services for the 99%. Police responded with tear gas, rubber bullets, beanbag rounds and mass arrests. The state has compounded its policy of callous indifference with a ruthless display of violent repression. The Occupy movement will respond, as we have always responded: with an overwhelming show of collective resistance.

Of course, Oakland Mayor, Jean Quan has a different point of view. She says "I ran out of patience a long time ago" and the protesters are just vandals, out to damage the city. Here's video of Oakland police cracking down on the OWS protesters, and their response -

Weekly Wrap

Like I've said before, the stock market often acts just like a beautiful, but fickle woman. Sometimes it takes a little effort, but if you love her and treat her right, you'll get back more than you give. Monkee around with her, and she'll turn on a dime.

In that respect, I've been trying to get her to realize the beauty I saw in her when no one loved her a few months back, and now her face is starting to glow again. All it took was the ability to see what was underneath her tarnished reputation, realizing her potential, and faithfully believing in her.

But, don't just take my word for it. Other investors are starting to appreciate her beauty too.



Although the S&P 500 barely closed out this week higher, it does mark the fourth straight week of gains for the index, returning approximately 4.6% to investors for the year so far.

It also marks what I believe to be the beginnings of a significant return in economic and stock market confidence. Short-term stock market movements are all about perception, and market conditions are now reflecting the perception that perhaps things aren't as ugly as previously thought.

Weekly Wrap

Well, it's looks as though my bullish stock market forecast is coming into fruition. In over this past month alone, the S&P 500 has climbed over one-hundred points, and finished this holiday-shortened week above that crucial 1300-point level.

Like I also said before, the economy isn't as bleak as is often reported, and investors may be starting to realize it. According to The Vanguard Group's economic week in review -

The economy continues its modest forward pace, without stoking higher inflation. In fact, this week's data show price increases decelerating, easing fears for the moment that the Fed's accommodative monetary policies are sowing the seeds of high inflation down the road. For the week ended January 20, the S&P 500 Index rose 2.0% to 1,315.38 (for a year-to-date total return—including price change plus dividends—of about +4.7%).

In this period of de-evolution, I think that's a good thing - and I'm expecting more gains to evolve.