Thursday, February 2, 2012

Stock Market Report 2/2/12: Groundhog Day


It is now the time for the Stock Market Report for February 2nd 2012 and for those who care about weather forecasts as predicted by a rodent, the famous Groundhog, Punxsutawney Phil has seen his shadow. Others have not. Given that the weather will do whatever it wants, who knows whether we’re have six more weeks. Granted it’s up for debate whether we’ve had six weeks of winter weather to begin with but hopefully we will have many weeks of good news on the stock market. As Facebook is the rage, we did have a rather easy day right on the Market.


Stock Market 2/2/12: Groundhog Day Edition.

A day that we are on the borderline of things. A day where we did not really fall right too much underneath the positive mark but also did not rise up. A nice and quiet day, as Facebook’s IPO looks to make people gain big. At least at first. Whether or not the good times will roll as Facebook takes that next still is something that remains to be seen.

Could we be seeing something of a green flag to buy fresh stocks? Perhaps, but there is just cautious optimism at best. The labor market is always on shaky ground, many would say unstable, and obviously regardless of how smartly people are going to invest, many will still be feeling a bit of a crunch and a bit of a cramp.

We are just going to have to watch the markets, and hopefully make sense out of it. I think one undisputed lesson over recent years as what we thought we knew years ago might no longer apply to the stock market, at least in some respects. A company like Facebook for example is set up to be something big, perhaps in the short term, but in the long term, it could flame out. The 1990s have taught that and that is part of the reason And we’re still in debt as a country, which means individually, there might be a certain ceiling.

Time will tell, and until tomorrow, remember to invest wisely.

Dow Jones: 12,707.08(-9.38)
Nasdaq: 2,859.68(+11.74)
S and P 500: 1,325.58(+1.48)

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