THURSDAY AUGUST 13, 2009

Good New...Bad News

Yesterday’s FOMC announcement was largely viewed as good news. In particular, the Fed announced that it would continue its U.S. Treasury bonds purchase program. They stated that the amounts would begin to decline and the program would end in October. For the bond market, the strategy seems to have threaded the needle. The program will continue to help digest the huge supply of treasury securities and thus help keep interest rates low. But the announcement also provides an exit strategy which will ease the market’s inflation fears.


This morning’s retail sales numbers were disappointing. Walmart’s earnings report summarizes the problem. While Walmart beat the earnings number, they did it through cost control. Revenue and same store comparisons were disappointing. This is evidence that consumers continue to be cautious and are deleveraging. This would indicate that the economic recovery might be slower than hoped.

 

Good news and bad news.

POSTED AT 1899-12-30 08:48:00.0

KEN ENTENMANN, CFA
SENIOR VICE PRESIDENT AND
THE DIRECTOR OF INVESTMENT MANAGEMENT SERVICES

Ken is a Senior Vice President and the Director of the Trust and Investment Services at Alliance Bank, N.A. He has 23 years of investment experience and oversees the management of assets totaling $1 billion. He holds a B.S. in Applied Economics and Business Management from Cornell University and an M.B.A. from the William E. Simon Graduate School of Business Administration at the University of Rochester. He has also earned his Chartered Financial Analyst designation. He is a member of the Executive Committee of the Trust Division of the New York Banker's Association. He is also a director of the Central New York Community Foundation.

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The opinions expressed here do not represent the views of Alliance Financial Corporation and Alliance Bank, N.A. This communication is not an offer or solicitation for the purchase or sale of any security, is for general informational purposes only and does not provide personalized investment advice. When making personal investment decisions you should consult your investment adviser or rely on your own research. Copyright 2008.