Diamonds and Dogs

Happy New Year, Happy New Decade!

Happy New Year, Happy New Decade!

Today we close out 2009, one of the wildest and unpredictable years in history. With amazing strength, the markets closed the year just off the 52 week highs, even with a nice sell-off today. It was the best year since 2003 as the Dow climbed about 19% and the Nasdaq surged over 43%. Nice numbers, but they still leave us negative for the past two years and 2009 will close out the worst stock market decade in history. Stocks have gone nowhere for the past 10 years, except down on average, as the decade is a barbell that began with the tech wreck of 2000-2002, and ended with the financial crisis and recession that is with us today. Of note is the fact that about 200 billion dollars moved into bond funds this year as stock funds witnessed a net outflow of about 5 billion. This will be the crucial story of 2010 I believe, as a tremendous bubble may be forming in what are thought of as conservative bonds. For now, let's enjoy the end of a fine year and toast the upcoming. Good health and happiness to all for 2010!

Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.