In case you missed it, here’s a summary of the ETF topics and market reviews I posted to my blog during the week ending on 9/30/2012.
With the anticipation of what the Fed might do next being gone, the markets returned to a more normal state and reacted to good and bad news as you might expect them to do. With QEternal now a given fact, the major indexes went through a mild correction with the S&P 500 giving back some 1.3% last week.
Nevertheless, we are still in a total disconnect from the fundamentals when looking at the elevated level of equities. Global economic data points are still confirming that a slowdown is underway, not just in the US but anywhere you look.
Still, the bulls remain in control so far, but weakness in equities has definitely spread since the Fed’s QE announcement. Whether that is just a short-term retrenchment is too early to tell but it behooves you to be aware of where your sell stops are in case downside momentum picks up speed. Should things get ugly, large crowds will attempt to squeeze through small exit doors, so you want to be ahead of the masses.
Over past week, we covered the following: