January 29, 2013 Update

DJIA:13,881 NASDAQ:3,154 10-YR TRS: 8/32, yield 1.976% Oil:$96.44 EURO:$1.3455 YEN:90.85

On Cents and Sensibility

Why is it that so many of us measure success by the quantity of tangible inputs and outputs we produce over a lifetime? Although money may be the easiest way to determine success, it is certainly not the most sensible. Financial stress from the 2008 crisis has caused a steep climb in the suicide rates in countries that have suffered the biggest losses. If you ask me, the relationship between humanity and the dollar is disturbing. Imagine if your life was a balance sheet, how would you decide to break it down? What would be your biggest assets? When it comes to your liabilities, what are you most responsible for? What would be your ideal equity? Society tends to measure things in dollars, but I challenge you to create the balance sheet of your life without using currency. The reality is the Great Recession is not over. A crisis similar to that of 2008 could happen again. Which leaves my question to you: If you were a victim of the next financial crisis, would you really be loosing all of your assets? 

Domestic News

• Market Update Trading mostly lower as investors wait for the release of today’s earnings and important economic data.
• At 9am the S&P/Case-Shiller index of U.S. home prices will be released. It is forecast to decrease for November, but show home prices increasing on an annual non-seasonally adjusted basis. 
• At 10am the Conference Board will announce consumer confidence, which is expected to drop to 64.3 for January compared to December’s 65.1. 
• Bernanke is due to speak at 2:15, his latest round of bound buying is likely to reach $1.14T before he ends the program in Q1 of 2014. He will continue to purchased 40B a mouth in mortgage bound and $45B in Treasuries, although many are concerned about the long term effects. 

International Updates

Europe

• Market Update Opened higher, led by resource stocks, after an upbeat German consumer-confidence report. 

Asia

• Market Update Trading mostly higher as banks lead the rally in Japan, although Hong Kong lagged. 

Corporate

• Earnings: