Events Calendar

Current Weather

Manatee Road Watch


Sean Tampa Bay yacht Management Bills Discount Center - New & used Furnature, Appliances and More!

The Bradenton Times Polls

Poll Question: Do you agree with the U.S. government's move to normalize relations with Cuba?

 Yes  No More polls »



Home
Change Text Size: Larger  Smaller

News Section: Business and Financial



Ask Guido: Your Investment Resource

Published Monday, August 11, 2014 9:30 am
https://www.thebradentontimes.com/clientuploads/guido/EvanAdAug-Oct300.jpg

The equity markets managed to carve out fractional gains last week despite the turmoil overseas. Stocks were supported by improving corporate earnings and fresh economic data that show the U.S. economic recovery is accelerating. Second quarter corporate earnings are also experiencing a revival with gains approaching 9.0%.

The improvement in the business environment, however, raises the prospect that the Federal Reserve could shift monetary policy sooner than expected. The principal support for the stock market the past five years has been the extraordinary policies adopted by Fed Chief Bernanke and now Janet Yellen to stimulate the economy. 

The concern is that the Fed, by reducing the level of quantitative easing, is already in a tightening mode and improving economic conditions could accelerate the end of the era of low interest rates. Friendly monetary policy since 2009 has trumped fundamental and technical analysis. This partially explains the increase in stock market volatility that is likely to continue into the fourth quarter.  Support is 1900 using the S&P 500 and resistance is in the vicinity of 1960. 

Continued weakness in the broad market has become a headwind for the popular averages. This is seen in the declining percentage of groups within the S&P 500 that are in defined uptrends.  There has also been a reduction in the number of issues hitting new 52-week highs and an expansion of issues recording new 52-week lows. 

Seasonal pressures are also a factor given that historically stocks are entering the weakest period of the year.  The rise in stock market volatility has caused a sharp uptick in short-term investor pessimism.  This suggests that the rally late last week will likely carry forward this week.  Nevertheless, with the Tape weakening and seasonal pressures mounting a cautious approach is warranted. 

https://www.thebradentontimes.com/clientuploads/Guido%20Charts/Sent81114.jpg
https://www.thebradentontimes.com/clientuploads/Guido%20Charts/SRR81114.jpg

 

See also:

At What Age Should You Take Your Social Security?

 

Got Questions? Ask Guido 

 

Article provided by Robert W. Baird & Co. with the authorization of its author for Evan Guido, Vice President, Financial Advisor at the Sarasota office of Robert W. Baird & Co., member SIPC. The opinions expressed are subject to change, are not a complete analysis of every material fact and the information is not guaranteed to be accurate. 

 

 

Evan R. Guido

Vice President of Private Wealth Management

One Sarasota Tower, Suite 1200

Two North Tamiami Trail

Sarasota, FL  34236-4702

941-906-2829 Direct Line

888 366-6603 Toll Free

941 366-6193 Fax

 

www.EVANGUIDO.com

Join the conversation post Facebook comments here or on our site at the bottom of article.

 

  In Addition to Facebook Comments You Can Also Post Comments Below



Non-Facebook Comments:

Click here to add a Non-Facebook comment to this page




 Sign up for our free news subscription - a great way to stay informed!



News World Round UpSports Roundup

Manatee Rural Health Certificate
 

MidTown Manatee - Shop here - Work here - Play Here - Live Here - Worship Here - Dine Here

Obituaries

Name Date
Thelma Mathis December 14, 2014
Robert Cooper December 9, 2014
Sarah Robinson December 12, 2014
Harry Wujcik December 13, 2014
Annie McNally December 12, 2014
Pritamdas Chatani December 11, 2014
Alice Taft December 7, 2014
Arlene Stromberg December 8, 2014
Donald Ross December 10, 2014
All Obituaries






Copyright © 2009 - 2014 | The Bradenton Times | More than just an Online Newspaper | http://www.thebradentontimes.com/
405 26 Avenue Bradenton, FL 34205
Phone: 941-896-7857 - Privacy Policy - RSS Feed
Template provided by Free CSS Templates