People ask me what I think of the market, and I honestly tell them that I am of two minds.
On the one hand, we have the worst employment market in a generation. Following the cessation of leasing programs in August, auto sales fell off a cliff. We now have the practical consequences of the seizure in consumer finance. It’s frightening to invest during such volatile times.
But on the other hand the equity market is resilient, LIBOR spreads are coming in, banks are issuing bonds, and the markets look and feel constructive. By any measure, most stocks and bonds offer value. A stock market that can absorb the worst jobs report in 38 years and end the week with a strong rally is a market that I want to be part of.
This Dr. Jekyll / Mr. Hyde market economy is about to get a trillion dollar stimulus. What do I think about the market? Don’t panic but don’t be manic. Stick with your long-term plan, and enjoy the ride. We’re living through history.
Douglas R. Tengdin, CFA
Chief Investment Officer
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