Market Commentary from June 20th, 2008

The March lows are in sight, at least for the Dow (and the Financial Sector is already beneath that level).

Sentiment is getting more bearish.  And, the S&P 500 is set to have its fourth consecutive quarter of negative earnings growth.   Based on history, though, the market has typically outperformed its averages after earnings have been weak for this long.

For your reading pleasure, here are some of the items that caught my eye this week:

  • Fed sending signals that rates aren’t going higher yet. (WSJ, FT, WP)
  • AAII Bear Sentiment above 50%, for 11th time in past year. (Bespoke)
  • Royal Bank of Scotland issues crash warning for stock and credit markets. (Telegraph)
  • Ex-Bear Stearns Fund Managers Arrested. (Bloomberg)
  • Short-Selling is tough, and good for the Markets. (The Economist)
  • Is the S&P 500 Index a good benchmark to compare performance against? (Infectious Greed)
  • “The Frozen Gaze” Op-Ed Column on Tiger Wood’s Focus and Mental Toughness. (NYTimes)
  • Obama 1st major party candidate to reject public financing and its spending limits. (NYTimes)
  • IBM Roadrunner is the new world’s fastest computer. (InformationWeek)
  • Philadelphia to Fake-Out Drivers With 3D Speed Bump Images. (Gizmodo)
  • Bad guys really do get the most girls. (New Scientist)
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