Current Market Brief
February 2012
The volatility of 2011 gave many a pessimistic outlook for the New Year. Yet the January market renewed our optimism and positive outlook for 2012. Both the Dow Jones Industrial Average and the Standard and Poor's 500 posted their best January performances since 1997. The DJIA rose 3.4% and the S&P 500 increased 4.4% to end a solid January. Investors were encouraged with an 8.5% unemployment rate, the lowest in 3 years, paired with an improving US economy.
February also started off on a positive note. U.S manufacturing rose to 54.1 in January, its highest level since June 2011. Although this may have been slightly lower than some estimates, it still signals growth in the U.S manufacturing sector. Construction also gained in December, marking five consecutive months of gains.
Europe will continue to be a main focus as we move through February. With all eyes on Greece, volatility is likely to remain high until a solution is reached. European debt talks combined with the Fed promising low interest rates until 2014 will likely lead investors towards municipals bonds and high grade corporate debt. Check back throughout the month for updates on this volatile market. Contact us anytime to discuss how these and other ideas might impact your investment strategy. -Aaron Kroll