Weighing The Week Ahead: Three-Day Homestretch
Jeff Miller | Oct 31, 2012 01:26AM ET
Hurricane Sandy has been uppermost in everyone's concerns. We have the greatest sympathy for those who have lost loved ones, homes, and businesses. The effects of weather are often devastating in any setting. Here in the midwest, it is often a tornado that strikes with little warning. When a hurricane hits highly-populated areas, the effects are even greater.
One mission of the investment manager is to think about the financial effects and prospects no matter what else is going on. We now have more clarity about this week's schedule, so I will do my regular preview of the upcoming abbreviated week.
I see this as a three-day homestretch leading to an important inflection point -- next week's theme. The key elements are the following:
- Continuing corporate earnings reports, where a mixed story continues;
- The looming concerns over the fiscal cliff, with increasing prominence and visibility;
- The election, with potential for significant change.
I'll offer my own take on these themes in the conclusion, but first let us do our regular review of last week's news.
Background on "Weighing the Week Ahead"
There are many good lists of upcoming events. One source I especially like is the weekly post from the WSJ's new investor resource page -- a starting point for the long-term investor. (Comments and suggestions welcome. I am trying to be helpful and I love feedback. We have a good discussion going on bonds versus funds, and I plan a separate article that will provide a further forum.)
Final Thoughts on the Homestretch
In the last few weeks I have noted that we were entering the season of fear. There has been a change in tone, with little response to good news. Stocks have done poorly despite improved economic data.
When the overall earnings story is mixed, we can expect many executives to present a downbeat outlook. There is little reason to make bold predictions. Executives can be cautious, citing problems in Europe, China, and Washington.
I see continuing evidence that businesses are cautious while waiting for a resolution to the "fiscal cliff."
In a few days, there will be a lot less uncertainty. Markets hate uncertainty -- and so do businesses.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.