Daily Investment Interpretations
July 29, 2008
The stock market's upsurge today more than undid yesterday's decline. The
Nasdaq climbed 55.4 points (2.54%) to close at 2,319.32, after dropping 46.31
points yesterday. The Dow upticked 266.48 points (2.39%) to end the day at
11,397.5, after losing 240 points yesterday. The S&P added 28.83 points
(2.34%) after falling 23½ points yesterday. And the VIX fell back 2.2 points to
finish at 22. The proximate cause for this largesse was a dramatic $2.54 drop in
crude oil prices to $122.19.
If the cost of oil and other commodities continues to ease, then inflationary pressures could begin to subside, as predicted months ago by the Federal Reserve. Meanwhile, Michael Ashbaugh sees greater upside potential (85-10%) than downside risk (2%): Risk favors bullish view, Ashbaugh writes. On the other side of the table, Todd Harrison has this to say today: The sooner it begins, the sooner it will end.
For now, I'm keeping the majority of my investments in cash..