Crew Capital Management Thoughts on Investment

Welcome to the Crew Capital Management Thoughts on Investment blog. At Crew Capital, investment education is key to how we work with our clients. We hope our conversation and analysis entice you to think further on your investment strategies and planning. For further discussion, please contact us at rjung@crewcapital.com

Thank you!
Robert F. Jung, CFA CPA*

*CPA inactve

Wednesday, April 2, 2008

Stock Market up +3%, Best Second Quarter Start In 70 Years

The second quarter of 2008 started off with big gains:
  • Dow Industrials closed up 391 points (+3.2%),
  • NASDAQ +83 points (3.67%),
  • S&P 500 +47 points (3.58%).

Why the gains?

A change in prospective is the main reason being quoted, as investors shift from the glass half empty view to glass half full view. Recent actions by the Fed are taking hold and having positive impact on the economy. The first interest rate cuts from 2007 are starting to impact the market. ISM Manufacturing Index increased to a reading of 48.6 in March from 48.3 in February. This reading shows a decrease in manufacturing but at a slowing pace. A reading below 50 notes contraction.

First quarter earnings announcements will start soon with financials and home builders expected to report negative results. Major write downs are the catalyst for the negative results. Housing inventories are still at an all time high with sales at 20 year lows. Crew projects a rotation from the financial and home builders sectors to higher quality stable sales and earnings sectors. This shift will benefit many of the stocks Crew follows.

Expect pullback from yesterdays gains as the market finds footing to build from.
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