Weekly Market Re-Cap: 11/7/2011
Last week stuck to theme of extreme volatility being driven by the uncertainty in Europe. The week started out weak with the call for referendum by Greek Prime Minister George Papandreau. Any surprise announcement is normally negative for the markets and this did not disappoint. We recovered slightly toward the end of the week as fears of referendum faded. We did get some positive news from our economic data with unemployment ticking down to 9.0% . We still finished the week down roughly 2% from most averages.
The one thing that seems to be clear as we come into the end of 2011, volatility is hear to stay. Put on the seat belt and ride the extreme swings. The US market is still priced fairly cheap, and the fundamentals are not great, they are certainly not a bad as the market has traded. As long as you maintain your long term focus and allocation you will weather this storm. Stay tuned this week to Intial Jobless claims and the Michigan Consumer Sentiment.