Time & Money Review 10/05/07 – Market Focus Changes on a Dime

The crowd crazing for more rates cuts may have taken a hit on Friday, as jobs appear to be back on track.  Jobs reported by the Labor Department increased by 110,000 for September.  However, the good news was that August negative print of -4000 jobs was revised up to 89,000.

Calls for a US recession grew louder after the August report and many believed it was the impetus for the 50 basis point rate cut.  The market rallied on cue as not fighting the Fed was back in vogue. 

The debate shifted to whether this was the beginning of a Fed reduction cycle and if more rates cuts were essential for the market to move higher.  Friday’s job number appears to have taken that thesis off the table and now earnings and global growth are the talk of the town.

For the week, the DOW, S&P 500 and NASDAQ were up 1.2%, 2.0% and 2.9% respectively.  Commodities were mostly down Gold -0.4%, Silver -3.1% and Oil -0.5%.  Copper bucked the trend closing up 2.4%.

The TTaMG portfolios fared well:

  • Fab 4               1.3%
  • BBO                 3.1%
  • BRIC                3.7%
  • Real Money    -1.4%
  • TBS                  6.6%
  • MDs Ag Play   -0.4%

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