Friday, April 10, 2009

Long Weekend, Long Year

<--That's a chart of the S&P 500 Index year-to-date. The U.S. market is now down a whopping 5% after the stunning move of the last month.

In other words, less that 1/3 of the year has passed, a lot of things have happened and very little has been accomplished.

As the Fed and Treasury continue to simultaneously stimulate the economy and prevent any systemic failures and Obama tries to do everything, Goldman is contemplating selling stock in here, still 40% below its high up up 100% from its low, to pay back TARP funds to everybody's least favorite Uncle, Sam.

Credit Suisse surveyed over 400 institutional investors in the last couple of weeks and released the results on Wednesday. Of note, cash levels have been going down and 51% of respondents think that the market has bottomed. We're still at a level where stocks can work as long as results are not clearly worse than expected.

It will be a busy week for earnings coming up. Enjoy the weekend.

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