Industry Market Commentaries
Financial Reform:
Some Legislation Highlights and Investment Implications
President Obama signed into law the biggest overhaul of the financial industry since the Great Depression. The Dodd-Frank Wall Street Reform and Consumer Protection Act touches virtually every corner of finance, from credit card fees to derivative trades. Prompted by the 2008 credit crisis, the legislation establishes new consumer protections, subjects more financial firms to federal oversight, sets new standards for the derivatives market and gives regulators greater power to dismantle firms on the verge of collapse. »»
Market Commentary
Two articles in the New York Times on Saturday (July 17th) encapsulated about all you need to know to understand this stock market. The first was the lead on the front page: “Wealthy Sector of Buying Public is Cutting Back.” The second was in the business section: “Wall Street Stumbles on Disappointing Bank Earnings.” With consumption at around 70% of GDP,1 U.S. economic growth relies heavily on a consumer able and willing to spend. »»
Investment Manager Outlook
Reflecting managers’ views of the market, 47 percent of respondents believe the market to be undervalued, a substantial rise from the 28 percent figure from the March 2010 survey. Only 9 percent of managers believe the market to be overvalued. »»
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