A September to remember?

Market observations for the week of Sept. 17 to Sept. 24, 2010

Claymore Investments, Inc. 29 September, 2010 | 4:00AM

The major market indices finished higher for a fourth consecutive week on fading concerns over the durability of the global economic recovery, the announcement that the U.S. recession officially ended in June, and the growing likelihood of additional stimulus measures by the Federal Reserve.

On a month-to-date basis, the S&P has tacked on more than 9% while the NASDAQ has added over 12%. As mentioned in prior editions of the Weekly Viewpoint, the investment community has generally been positioned for a sharp slowdown in economic growth (a "double dip"). However, with the recent improvement in economic data, coupled with the pending close to the third quarter, investors appear to be rotating back into the equity markets. Anecdotally, it appears that traders now believe the bigger risk is to be out of the market versus in it.

While September has historically been the worst month of the year for market performance, the sharp decline in August may have pulled the negative performance forward. In addition, with the economy on the mend and the growing potential for a market-friendly outcome to the mid-term elections in the U.S., the risk/reward ratio may have tipped back in favour for stocks.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

About Author

Claymore Investments, Inc.

Claymore Investments, Inc.  

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies