Commentary

George Chamberlin

GEORGE CHAMBERLIN has been associated with The Daily Transcript at SDDT.com since 1998 and became Executive Editor in 2006. He is responsible for the development of editorial strategies for the newspaper and website. He has introduced video and audio into the editorial products and is the public face of the company at many community events. George regularly chairs industry roundtables and conducts video interviews of participants for use on the San Diego Source. He writes two daily columns, "Money in the Morning" and a daily stock market wrap-up.

George, a long time resident of North County, lives in Vista with his wife Terry.

From the Executive Editor

Action and reaction. The markets continue to be buffered from nonfinancial circumstances. For instance, the attacks in Ottawa on Wednesday sent the Dow industrials down 153 points. However, once it appeared the situation in the Canadian capital was not the start of a wider terrorist attack, the markets calmed down and the Dow jumped 217 points yesterday.

For generations, parents have worried their children will have a tough time making it financially in a world that seems fraught with danger. And conventional wisdom says today’s millennials — those between the ages of 18 and 34 — don't have a chance.

The terror in Ottawa took stock prices lower yesterday. The markets had been meandering throughout early morning trading, a brief respite after three consecutive winning sessions. However, things changed as word spread about the events in the Canadian capital and the markets turned south, with the Dow industrials ending the session with a 153-point loss. As has been the case for some time, it is not actually the event itself driving the market lower, but the uncertainty about how serious the situation could become. Too be sure, the intent of organized terrorism is to take down the economies of the free world. It was no coincidence that the attacks of Sept. 11, 2001, targeted the World Trade Center in New York and the neighboring financial hub of the world.

The bulls are back. After several weeks of bearish activity -- the Dow industrials started this week down about 5 percent from the all-time high set on Sept. 19 -- the markets have been coming back with gusto. The Dow jumped 215 points yesterday and has returned to positive territory for the year. But the big winner yesterday was the Nasdaq, up a staggering 103 points, or 2.4 percent. It was propelled by big gains in Apple shares following a report showing big sales of its iPhones and computers.

Concerns about a violent incident in Canada on Wednesday sent stock prices lower, snapping a three-session winning streak.

For most people, last Sunday was just another day, perhaps marred only by the Chargers’ loss to the Kansas City Chiefs.

A small gain could have been a big gain. The Dow industrials yesterday rose 19 points but could have been up a bunch more had it not been for IBM. Shares of Big Blue fell more than 7 percent after reducing its earnings and revenue forecasts for the full year. Had the shares been flat on the day, the Dow probably would have been up about 60 points. The Nasdaq was actually up 1.4 percent yesterday and the S&P 500 also posted a solid gain.

Stocks posted solid gains Tuesday after a report showing strong home sales and big gains for Apple.

Stock prices moved higher Monday despite a disappointing earnings forecast by IBM.

The market crash has been delayed again. Just when it looked like the bears were going to take control and push stocks sharply lower, along comes a big ol’ rally. The Dow industrials were up 263 points on Friday, an unusual move considering the concerns about Ebola, ISIS and other geopolitical issues. As a rule, investors usually move to the sidelines going into a weekend where there is uncertainty. Instead, people were seizing the opportunity after the declines earlier in the week to pick up some bargains. Still, the Dow and other indexes were down about 1 percent for the week and are off 5 percent from the record highs set Sept. 19. Hardly the makings of a bear market.

It's probably too early to declare the recent correction in stock prices to be over, but today's early rally is a welcome relief. The Dow industrials jumped 200 points in the first half-hour of trading despite few changes in the circumstances that have dragged down stock sharply in the past two and a half weeks. The Ebola situation continues to dominate the headlines with every event -- even the bogus scare at Southwestern College yesterday -- adding to the panic. The fact the stock market is moving higher as we go into the weekend is a bit unusual. Usually, when investors are nervous, the prospect of something bad happening when the markets are closed usually results in profit-taking on Fridays.

The financial markets were relatively calm Thursday, despite growing concerns about the possible spread of Ebola in the United States.

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