It has been some time since I have seen so many market strategist laser focused on the fact the market has topped out and appears to be rolling over. It isn't a frequent occurrence when strategist make perfect market timing calls. Certainly there is a great deal to worry about as we move into the second half of August and then the notoriously poor market months of September and October. Jackson Hole is this week, Fed tapering remains on the table, approaching elections in Germany in September, the need for Congress to deal with the debt ceiling all of which are enough to knock the life out of the bulls. Of concern to many, and rightfully so, is the fact this market seems to have moved higher unabated since the end of the financial crisis. Below are a few of the articles we have reviewed in advance of the coming week.
- "Risk free" rate does not mean you won't lose money in your Treasury portfolio. (Business Insider)
- Will the bulls climb the "wall of worry" this week? (schaeffer's trading floor)
- China's air pollution deterring tourists and businesses. (Forbes)
- Euro area economic data continues to improve (stabilize). (AlphaNow)
- Industrial production slows in the U.S. but picks up in Europe. (Calafia Beach Pundit)
- A number of retailers report earnings this week [Home Depot (HD), Lowes (LOW), Target (TGT), JC Penney (JCP), Best Buy (BBY), Dick's Sporting Goods (DKS)] so we will see if last week's drop in consumer confidence is backed up by consumer actions. (YahooFinance)