Diamonds and Dogs
henry david thoreauHenry David Thoreau once remarked "That government is best which governs least." Once again, the US government took an active role in the markets this week, with very disappointing results. On the heels of a democratic defeat in Massachusetts, which basically defeated the president's hope for business unfriendly healthcare reform, the president chided Wall Street big shots. In surprising fashion, Obama took a shot at the big banks and offered dramatic changes to how Wall Street works. I am not here to defend the giant banking firms, their processes, or their huge compensation. But the surprise pronouncements by the White House shook the financial markets and created a down-draft which we hadn't seen since March of last year. In three days, stocks lost close to 5% as the old saying goes, Wall Street fears the unknown and right now, we have no idea what will come out of the leader of the free world's mouth next. For traders, we broke
through the 50 day moving average and are trading around the 200 day, so there may be a bounce in the offering this coming week.
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.