Musings On Tuesday -A Great Start For March

• Markets opened the month with a tentative gain and built momentum only to give up some near the close. Still an impressive first day Monday, March 1st, Tuesday lost most of the glimmer, although stocks traded in a narrow range with Ford beating GM in total sales for the first time in...well, a long time. MSCI Emerging Markets have had some life in them gaining 4% the last few trading sessions. India, in particular, has seen some increases in manufacturing and exporting. Only 2 points on the DOW at the close. Wednesday locked in losers brought on by the health industry and guess-who called for a vote on you-know-what and said he was seeking to push the 'long and wrenching debate; over health care...His words alone sent the markets lower. Cat, GE and Alcoa all up for the session. Thursday was up and down and finally the markets ended up 47.48 on the DOW. Emerging markets ended their four day rally down 1/2, the dollar rose. Commodities fell on the dollar strength. Friday a better than expected job report as analysts, brokers and investors were bracing for bad news buoyed the broader markets into a triple digit day closing the first week of March on a positive mood.


• Barrons wished investors all a Happy Anniversary Monday and stated that even with the 2009 rally the S&P 500 is no higher than it stood in 1998 and 27% below its 2007 high of 1565. Look to the market to reach 1300 by end of year. Bully.


• Gold may still face stiff headwinds in the coming weeks, so says Mark Hulbert of MarketWatch. This is only a short term situation. Reasons is that there is too much 'creeping optimism;, Gold got more than a little giddy-up Monday and Tuesday and not so much the rest of the week.


• Missing something in that sandwich? Tomato prices are soaring, from $6 a box to over $30 - blame the Florida weather.


• Thinking of strapping on a six shooter, pard? Well, Starbucks says you can mosey on in as long as your piece is unloaded. I didn't know this but 43 states allow folks to walk around packing heat as long as their weapon is unloaded. I am not one of those bleeding hearts that doesn't want anyone not to own a tank or bazooka of choice but some old geezer strapping iron and sauntering into the local CVS to pick up a tube of ointment is where I draw the line. Who knew?


• Consumer confidence nose-dived in February but retailers reported solid gains. A wide economic range of retailers from Nordstrom to Target reported sales that beat analysts' estimates.


• Greece successfully sold bonds and deflated critics Thursday. David Callaway in MarketWatch blames the crisis on George Soros and friends (see last week's blog), and says the crisis is over.


• Herbert Allison, a Treasury official who oversees the $700 billion financial rescue plan, said to a Congressional hearing this past week, that there is no too big-to-fail government policy guarantee. Testimony stoppped when some observers swear Allison's nose grew two inches.


• March 15th Bloomberg Businessweek reports on a possible Bear in a China Shop. A billion investment dollars have moved out of China equity funds so far in 2010. The Shanghai Composite Index is down 6%. And Central bank Gov Zhou says that 'eventually' the Yuan will move away from its current 'dollar' exchange policy. When that happens no more cheap tees, shoes and tidy-whities.


• Please mark your calendar April 3rd at 11 AM for my Inflation Crisis Webinar. All you need is a computer and phone and you never have to leave your home or office. More info on my web site. Promise you won't miss it. Probably last 30 minutes. If you have a second right now go to my web site and register.

  If you have any questions on anything contained in this blog write to Paul Stanley pstanley@westminsterfinancial.com or call him at 877 783 7080.