Latest Market Thoughts…

I love to read Bob Doll, of Blackrock. He’s got a good perspective on things. Here’s his latest commentary (Click Here), in summary: 

• Second quarter earnings off to a good start – 80% of reported companies are exceeding expectations.
• We are seeing a “V-shaped” recovery in manufacturing,
• While the consumer sector is looking more like a “U shape”
• The credit and housing markets, however, are still stuck in an “L shape.”

Stock prices have remained in a broad trading range for the past several weeks. Equity markets appear to be caught between a number of positive and negative forces.

Positives:

• continued strong corporate earnings
• reasonably cheap valuations
• lower bond yields that have been helpful to both consumers and businesses
• increasing share buybacks and dividend payments, and
• a still-accommodative Federal Reserve.

On the negative side:

• stocks are being hurt by an environment of slowing (but still positive) economic and profits growth,
• weak money and credit growth,
• ongoing uncertainty surrounding issues such as the sovereign debt crisis,
• the Gulf oil spill and
• the legislative agenda in Washington, DC.

Over time, we expect the positive forces to win out and stocks to grind higher, but we would not be surprised to see equity markets remain in their current trading range until there is more clarity around the severity of the current slowdown.

All this reminds of the real key to investment success – putting together a plan & sticking to it.  Are you on track? Click HERE to find out…