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In 2001 Greg licensed Solomon Asset Management as a registered investment advisory firm to provide institutions and individuals stock market research and investment management. Greg received a bachelor’s degree from Cornell University and a Masters Degree in Public Administration from Kean... More
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  • Can The Stock Market Keep Its Momentum Throughout '13 0 comments
    Feb 14, 2013 8:42 PM

    During 2012, the stock market recovered handsomely from the effects of the usual demons - euro crisis, high oil prices, low oil prices, occupy Wall Street and political uncertainty. After a long downward slide between the first quarter and the third quarter, each of the major indexes rallied to finish the year near their first quarter highs. On the final session of the year, stocks posted a triple digit gain enabling the Dow Jones Industrial Average to post a 7.3% gain for the year.

    On January 2, stocks jump-started 2013 with another triple digit rally of nearly 2.5% to bring the Dow within 5% off its all-time closing high (the Dow Jones Average all-time high is 14,164.53 posted October 9, 2007). The broader Standard & Poor's Index of 500 stocks out-paced the DJIA during 2012; however, the index remains nearly 7% from its peak. From a psychological perspective, the stock market still has a long way to go to overcome the damage caused by the 2008-09 bear market. Meanwhile, the U.S. economy continues to recover at a dilatory pace.

    In 2013, investors can be more comfortable with the devils we know, perhaps because they are not getting worse. Besides the situation in Greece, most economic issues are pretty much the same as they were during the market corrections in the last two years. As per the Federal Reserve, we can continue to expect ultra-low interest rates and an ongoing flood of money from the government to prod consumer spending. Interest rates have dropped steadily throughout the last four years to historically low levels. Currently, the yield on the 10-year Treasury bond (often used as the benchmark for money market funds) sits below 2%.

    After having endured a decade long roller coaster ride to inkle together modest returns, stock market investors recently faced a battery of assaults aimed at Wall Street and corporate America. The denigration of U.S corporations not only hurts investors, it hurts the country…..because if there isn't a strong and growing corporate America with profitable companies, there will be companies from another country that will happily fill that role.

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