• Investing & Markets

Weekly Market Digest – Week Ending 10/21/11

October 21, 2011 | Craig Birk, CFP®

Stocks bounced around as investors reacted to every comment or rumor about how Europe may deal with its debt crisis. The continent’s leaders are scheduled to begin a six-day “marathon meeting” Saturday to try and make further progress. Meanwhile, earnings season kicked into full gear with most companies meeting or exceeding expectations.

Major Events:

  • Tuesday – Stocks jumped after a rumor leaked in the UK’s Guardian newspaper said Europe was poised to create a $2 trillion Euro bailout fund.
  • Thursday – Libyan leader Muammar Qaddafi is killed in Sirte, marking an end to a tumultuous 42-year era.
  • Friday – Stocks end the week higher on more European optimism—talk of a $1.3 trillion rescue fund emerges.
  • Friday – President Obama also reiterated plans that U.S. troops will make a full withdrawal from Iraq by year end.

Our Take:

Not much happened this week, so it was telling that the market rallied anyway. There is some expectation that the upcoming “marathon meeting” in Europe will produce a viable solution, so a lack of progress could disappoint the market. In the meantime, long term investors should feel happy about continued earnings growth by most US corporations.

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