The Teflon market

Client Newsletter
Quarter Ending March 31,2011

Market has strong quarter in spite of serious international problems. Stocks enjoyed the best first quarter of the year since 1998, and begin April on an upbeat note. For the first quarter of2011 the Dow closed up 6.90/0, the S&P 500 up 5.95%, and the NASDAQ up 5.1 5%, a very strong showing in the face of continued uprisings in the Middle East, rising oil and commodity prices, and the Japanese earthquake and Tsunami. Dubbed by some, “the Teflon market”, the market just kept rising in the face of bad news. Volume was steady if not spectacular, a sign that the market had not entered a frothy stage. Indeed retail investors are yet to get excited by the market which has now reached its highest levels in three years.

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