Santa Fe Las Campanas Stock/Bond Market Report

The Dow missed 13,000 AGAIN today at its closing, and at which it hasn’t closed above since May 19, 2008 – just before Lehman’s collapse and the beginning of the financial crisis (from which the U.S. is still struggling to emerge).  Interest rates are still remaining (pretty much) at their lowest in history, and borrowers are wondering if rates will remain at their current level.  Again, if the stock market rises, so usually do interest rates, and vice versa.  If investors (after reviewing this week’s economic data) begin to believe economic growth will slow, stock prices will begin to fall, and interest rates will remain steady, or even drop slightly.  Investors are currently indicating they are more influenced by their “opinions of growth”, rather than international events.  The flirtation with the Dow closing above 13,000 is intriguing, but investors want “proof” that the economy is in a sustained recovery.   The interest-rate dance will be lead by the stock market investors in the coming week. By Ginger Sullivan of Anasazi Mortgage