Recent market statistics…

THE MARKETS

I find some recent market statistics to be encouraging. Corporate executives appear to be more optimistic on their own companies as the insider trading data for the week ended August 16 showed a parity of sales to purchases. In addition, margin debt fell 6.9% in July, a significant drop, to the lowest level in almost four years. A sizeable decline in margin debt has often been associated with market bottoms, as the speculative tone of a prior market peak with its heavy margin buying turns into the liquidation of margin positions – forced or otherwise – often seen near important lows.

The irony in the trading year to date is that the market was only able to gain any real traction in the past five weeks — a period in which many recovery boosters have begun to wonder aloud if the economy is on the verge of stumbling. Such a trading pattern could be suggesting that, beyond any considerations regarding the timing and vigor of recovery, the majority of investors simply regard stocks as oversold. To keep this market rally going, investors need to believe there is more value to uncover; and for that to happen, the feeble earnings recovery of the second quarter must get more muscular in the second half of the year.

By | 2002-09-03T11:18:30+00:00 September 3rd, 2002|Market and Portfolio Commentary|Comments Off on Recent market statistics…

About the Author:

Mark’s commitment to objective, independent wealth management led him to establish The Appleton Group LLC in April of 2002. With over 19 years of experience in the financial services industry, Mark serves as portfolio manager for our private client group, and co-manages all assets held in our suite of portfolio offerings. His responsibilities include risk analysis, asset allocation, market research, and institutional client development. Mark also serves as both Principal and CEO of The Appleton Group LLC. He earned his Accredited Investment Fiduciary (AIF) designation in 2016