Tag Archives: Hurricane Katrina
Will we ever forget 2005, the year of the monster storms? As if the destruction wrought by Hurricane Katrina wasn’t enough, now we’ve got another whirlwind bearing down on us. According to the latest projections, Hurricane Rita should strike the Texas coast, home to the nation’s largest oil-refining installations, Saturday morning.
A week from now, we’ll know a bit more — when the Federal Reserve meets and decides whether, out of respect for the victims of Hurricane Katrina, to take a break from its credit-tightening campaign. At this stage, I’m still expecting Greenspan & Co. to boost money market rates by another quarter-point (to 3.75% on federal funds). But it’s a close call.
Today’s stock market action was encouraging. After the sharp bounce we’ve enjoyed off the August 26 bottom, share prices were entitled to a breather. We got one today — a “minor pullback” of the sort I described on Tuesday’s posting. I hope you took advantage of it to pick up a few more stocks or funds for your own portfolio.
The grim pictures of Hurricane Katrina’s devastation are seared into America’s psyche. And now the gas lines! But have you seen what’s going on the bond market? It’s as if a hurricane blew into the Treasury sector, too — and knocked yields flat.
The stock market finally looks as if it’s ready to mount a decent rally. Bond yields have nosedived over the past few weeks, improving the relative valuation of most stocks. Meanwhile, the pullback in the major stock indexes is gradually losing “oomph,” a sign that a tradable bottom should now be at hand.