January 12, 2009
Good morning. The first full week of the New Year felt like a slower version of some of the weeks of the old year. The SPY fell from $92.96 to $89.09 (4.2%) and the VIX advanced from 39.18 to 42.81, as the ongoing fears of unemployment and access to credit continue to weigh on the market. We had a nice upside earnings surprise in Monsanto (MON), up almost 20% in one day, but most earnings announcements are bringing a steady stream of bad forecasts going forward, cuts in planned capital spending, and either hiring freezes or layoffs of some kind.