And That’s The Week That Was: 11.2.07

November 5, 2007 |

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Attached/linked please find And That’s The Week That Was…the Brounes & Associates market/economic commentary for the week ended November 2, 2007.  Though Merrill’s Stanley O’Neal updated his résumé’ this week (any pointers, ex-Bear Stearns exec Warren Spector?), the unemployment and non-farm payroll releases showed that generally employees are weathering the subprime storm quite nicely (thus far).  In fact, a quick glance at the week’s news would seem to depict that things in the economy are buzzing along just fine.  GDP is growing; labor remains steady; and, as expected, the Fed cut rates by another 25 bps.  So, why are the markets (sans techs) plunging?  Well, apparently the worst is yet to come and the mortgage woes are nowhere close to ending.  And, apparently inflation will soon be rearing its ugly head and oil prices are nowhere close to capping out.  And, apparently the Fed’s job is done for now and they can go back to the speaking tour with “all talk and no action.”  And, apparently equity valuations are still too high and financial services companies will guide the overall markets more directly than techs.  And apparently, the clout of the bears exceeds that of the bulls these days (though, apparently, sentiment is changing by the week, day, hour, minute, second).

Coming up in the week ahead:  ISM – Services (Monday), Balance of Trade (Friday)
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