Weekly Market Re-Cap 12/12/2011
Headline news continued to guide the market’s volatility last week. We did finish up slightly for the week with the DOW up 1.4%, S&P up .9%, and the NASDAQ up .8%. Again the markets were glued to Europe and the progression of talks to solve the debt crisis. They did move a bit closer later in the week, but many details still need to be worked out.
Our own economic climate has been gradually increasing as we saw US jobless claims fall and consumer spending show strength. As I have stated in the past, the fundamentals of our corporate landscape are very favorable and we continue to see growth. All this being said, I do anticipate a slight increase in jobless claims in the 1st quarter of 2012. That is part of the process of the recovery. We are on the path to recovery that can sometimes be painful and cloudy, but we are taking two steps forward with one step back.
I would be mindful that Europe will continue to spook the markets and bring volatility, but I would not be surprised to a Santa Claus Rally before we head into 2012 and the election year.