[dropcap]S[/dropcap]tocks 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.
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.
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.
Craig Birk is a member of the Personal Capital Advisors Investment Committee. He also serves as Vice President of Portfolio Management. Prior to Personal Capital Advisors, he was an integral leader within the portfolio management team at Fisher Investments. During Craig’s time there, the company increased assets under management from $1.5 billion under management to over $40 billion. His responsibilities included risk management, portfolio implementation oversight, and management of all securities and capital markets research analysts. Mr. Birk graduated from the University of California at San Diego and has earned the Certified Financial Planner® designation.
Disclaimer. This communication and all data are for informational purposes only and do not
constitute a recommendation to buy or sell securities. You should not rely
on this information as the primary basis of your investment, financial, or tax planning decisions. You
should consult your legal or tax professional regarding your specific situation. Third party data is obtained
from sources believed to be reliable. However, PCAC cannot guarantee that data's currency, accuracy, timeliness,
completeness or fitness for any particular purpose. Certain sections of this commentary may contain forward-looking
statements that are based on our reasonable expectations, estimate, projections and assumptions. Forward-looking
statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult
to predict. Past performance is not a guarantee of future return, nor is it necessarily indicative of future performance. Keep in
mind investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.