Daily Market Commentary
January 28, 2008
This will be a big week for data discovery. Expect a lot of volatility and plenty of commentary to accompany all the numbers that come out.
We'll start with New Home sales later this morning, following Friday's (surprise!!) horrible Existing Home sales numbers.
Durables, GDP, PCE, Employment, not to mention a Fed meeting will keep us busy analyzing the movements of the markets.
Over the weekend, Friday's selling in equities seems to have leaked into the rest of the market sending bonds higher almost everywhere.
Treasuries and Canada bonds are mixed, but we are expecting the wild markets we saw last week to continue.
The headline we saw with amusement this morning in the top stories is "Global recession risk grows as 'Collateral Damage' Hits UK, Japan". We've mention before in this column, but it's worth repeating. The US consumer has been responsible for about one fifth of the WORLD's GDP. If you don't think that a major retrenchment of the consumers' number one asset and source of much of their liquidity (their homes) will cause a slowdown worldwide, you'd better rethink. The US buys most of the stuff that China, India, Japan and Canada export. We will feel their pain should this pullback continue.
<< Back to Blog Entry Index