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Federal Reserve Chairman Ben Bernanke testified
before the Senate Banking Committee on Valentine's Day. His
comments sparked confidence that interest rates would remain
unchanged
in the near future. As a result, the Dow Jones Industrial
Average (DJIA) closed at a new high. The Dow Jones Transportation
Average and the Dow Jones Utility Average also set new records.
It was the first time since 1998 that these indexes have
hit new highs on the same day that the DJIA closed at a record
high. Not only did investors benefit from market gains,
they
also got a boost in confidence from the breadth of the stock
market's rally.
Last week the Commerce Department reported
that construction starts faltered during January, posting
the largest drop in
10 years. The reports weren't taken as bad news, however,
because signs of economic weakness in one part of our economy
reinforced the idea that the Fed won't need to raise
rates anytime soon. Also, the news was balanced by a drop
in wholesale prices during January; an indication that inflation
may be easing. After all was said and done, the DJIA posted
four days of gains, rising more than 215 points from Tuesday
to Friday, according to Yahoo! Finance.
| Returns through 02/16/07 |
1-Week |
Y-T-D |
1-Year |
3-Year |
5-Year |
10-Year |
| Dow Jones Industrials |
1.5 |
2.4 |
14.9 |
6.0 |
5.6 |
6.1 |
| Nasdaq Composite |
1.5 |
3.4 |
9.4 |
6.3 |
7.3 |
6.2 |
| Standard & Poor's
500 |
1.2 |
2.6 |
13.1 |
8.0 |
6.1 |
6.0 |
Source: Yahoo! Finance, Barrons
Past performance is no guarantee of future results. Indices
are unmanaged and cannot be invested into directly.
Three-,
5-, and 10-year returns are annualized. Assumes dividends are
not reinvested.
The Chinese New Year officially began on
February 18th. This year's Lunar New Year is the year of the
pig. According to the Chinese Zodiac, pig personality traits
include:
“Intellectually curious, honest
and tolerant, those born in the Year of the Pig can be
relied upon for their loyalty and
often make true friends for life. The Pig can be very
naive, however, and may easily fall victim to the unscrupulous
who take advantage of their idealistic nature - as Pigs
see
everyone
as loyal and caring as they are. Although forced to play
the fool many times, they will just as likely hold fast
to the
notion that everyone is at heart decent and admirable.
. . . Stubbornly optimistic, the Pig will not tolerate those
with
well-meaning advice on how to be a Pig, but since they
dislike
quarreling and discord their anger usually cools quickly.” source:
chiff.com
Are current investors being piggish? The
current rally is now the third longest in duration since 1900
without so much
as a 10% correction. It has been 143 days since the Dow
Jones Industrial Average posted a 2% daily decline -- the
longest
such stretch in nearly 50 years. Remember when it comes
to the markets, BULLS make money, BEARS make money, but PIGS
often get slaughtered!
Have you ever noticed that lots of slang
terms for money are also names for food? You're sure
to recognize some of the examples below. You may even have
used one or two!
- Bacon: The saying, 'bringing home the bacon,' has
its origins in boxing. In 1906, Joe Gans, a lightweight
fighter, won a 42-round fight and $30,000 in prize money.
The telegraph
he sent home to his mother said: "bringing home the
bacon with lots of gravy on it."
- Bread and honey: If you've watched the Oceans
11 movie remake, you're familiar with the idea of
rhyming slang. In rhyming slang, 'bread and honey' means
money.
- Cabbage or lettuce: Money is green
and so are these.
Of course, the list would not be complete
without bread, dough, beans, and juice. Can you think of
any others?
Best Regards,
P.S. Please feel free to forward this newsletter
to family, friends, or colleagues.
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