Week 46 performance of the mutual fund

Comments: Our furry friend to the right, after taking a week off, made a return to the markets this week. Nothing new really surfaced this week in terms of bad news, aside from a few earnings blowups of some smaller companies and about the 97th warning in a row by FedEx (FDX) - of which the first 96 occurances the pundits told you, nevermind that; government reports show no technical recession - buy stocks. "Good" results (aka better than very bad expectations) by Best Buy (BBY) and Goldman Sachs (GS) Tuesday failed to rally their respective sectors (retail/financial) which is always a bad sign - we've seen these groups rally on terrible news in the past (it's not the news, but the reaction to the news that matters) so the fact the sectors acted poorly on the fact of relatively positive reports was a signal that good times were not ahead. The consumer continues to struggle under the "non recession" and "low unemployment" and "low inflation" situation. Strange - you'd think he would be doing wonderful in such conditions. Rebate checks (aka borrowing money from your grandchildren) should be spent out by end of July and then away we go, relying on tapped out consumers to spend again to keep up 70% of the economy. Weather continues to plague the Midwest, and I suppose the only bad thing missing was pestilence. Maybe next week?

Next week we have the Federal Reserve meeting and for the first time since last summer, bulls can't cry, whine, and beg for a rate cut. All the cuts they whined for so that their accounts could go up 1.2% more on news of the event, are now showing their ill effects worldwide. Inflation is hitting every country hard (except the U.S. of course - source: government reports) - and away we go. Thankfully the "2nd half recovery" is 2 weeks away so as long we survive the next 10 sessions the land of unicorns, mermaids, and butterflies dancing on rainbows awaits us.