Buyers return as fear may have outpaced fundamentals

Market observations for the week of June 7 to June 11, 2010

Claymore Investments, Inc. 16 June, 2010 | 10:16PM

The major market indices finished the week moderately higher as investors took advantage of the recent pullback to do some bargain hunting. The catalysts for the strength seemed to be fading concerns over the European debt crisis and a growing realization that fear may have outpaced fundamentals.

Last week's strength pushed the Dow back above the psychologically important 10K mark, although all of the major U.S. benchmarks still remain below their technically important 200-day moving averages.

Despite the gains, we continue to believe the markets are locked in a period of price discovery as investors try to gauge what is reflected in stock prices and what is coming to the forefront. This process will likely remain in play until further clarity emerges on how the European financial crisis has impacted the global economy.

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Claymore Investments, Inc.

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