“Don’t You Guys Want the Market’s to Go Up?”

During a car ride yesterday somewhat fleeing the rain from our not so guaranteed sunny state visit/vacation after an almost hour-long one-sided conversation that my wife had been listening to while Donald “The Brain” and I discussed earnings, interest rates, portfolio allocations, and the current market levels, she asked the following:

“Don’t you guys want the market’s to go up?”

Stunned by the question, I thought it worth mentioning. The short answer is absolutely, we want higher prices and we always want growth. The longer answer is at a reasonable rate. If markets get too far ahead of themselves they eventually will come crashing down, not what we want.  For the record, if everything was efficient there would be a much lower ability to earn returns.

Early Earnings Update

Winners are financials, manufacturing, and industrials…so far. Losers are broadly consumer driven areas. It is still in the first or second inning, but this is our initial take!

Interest Rates

Are finally behaving! Thanks goodness!! With Bernanke’s back and forth shuffling, we think market participants have finally calmed.

Enjoy your Friday, I will be back in next week (Tuesday), but of course this is the start to another summer weekend, albeit hot is certain areas of the country (rainy in others..haha) …. ENJOY! Summer Day road

John Kvale

PS Even after an hour-long drive, the rain found its way to our so-called sunny state visit…today, no rain, overcast but no rain…we will take what we can get!

PSS Ya, ya…I told the office, the family, and everyone, I would be out and probably not post much this week….Well,  I do Love this and enjoy sharing the thoughts!!

8222 Douglas Ave # 590
Dallas, TX 75225 

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