Jonathan Pond's Investment Commentary 
and Smart Money Tips 
For the Week of May 5 to 11, 2008

 

The Stock Market Continues to Rebound

Three weeks in a row.  Credit last week's gain with some very encouraging economic news, including reports that showed the economy growing rather than receding and an encouraging jobs report.  The major stock indexes tacked on another one to two percent to gains enjoyed over previous weeks.  Over the past seven weeks, stocks have gained 12 percent, thus bringing what were substantial losses for 2008 down to small losses.  Small is better, and now the big question is whether stocks can erase those losses and get back into positive territory.  That happy scenario is certainly not a sure thing, but the mood among investors has become a lot more positive in recent weeks.

 

A Broad Rally on Wall Street

The recent gains have been pretty evenly shared by most sectors of the stock market.  In other words, this has been a broad based rally, which is an encouraging sign.  Among the stock sectors, the big winners have been technology, natural resources, and telecommunications.  Financial services stocks have also been showing some signs of life at last.  International stocks haven't fared quite as well as U.S. stocks over the past several weeks, but they've still rebounded nicely.  Bonds have also produced some nice gains, thanks to declining interest rates which boost bond prices. 

 

Smart Money Tips

 

Thought for the Week

I'm a great believer in luck, and I find the harder I work the more I have of it.

 

 

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