For Now: Crosscurrents keep Stock Market in a holding pattern

by Laura Ehrenberg-Chesler on September 10, 2009

in Banks,Commercial Real Estate,Credit Crisis,Economic Indicators,Employment

In the past few days I have had discussions with clients and friends about the direction of the market in the next few weeks/months.

We are watching the data as it is released, and it is released almost daily.  Today we had jobless claims that fell more than expected, but job openings fell to a record low in July.  Employment is critical to a sustained improvement in the economy.

Based on recent conversations with professionals in the real estate industry, there is legitimate and growing concern about commercial real estate foreclosures, and the negative impact on banks and their willingness to lend.  There is also the concern about the lingering derivatives that may not yet have been unwound.

The combination of negatives and positives may keep the market in a holding pattern until there is some decisive news/data, or the perception that the economy is improving or deteriorating in a significant way.

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