Survey Shows Soft Landing

A survey of businesses just released by the National Association of Business Economists reveals a gently slowing economy.While seventy-eight percent of the firms met or exceeded their goals,the survey also showed slower momentum for the first quarter,with lower hiring and less of an increase in capital spending.Higher materials costs and wage inflation were cited as hindrances.There is a cautious outlook for the near term.This caution reminds investors to diversify their holdings.

Market Recovery Complete

As of the closing bell on April 16,the stock market had fully recovered from its February 27 correction.Indeed,the S&P 500 index stood at a six and a half year high.According to Jason Trennert,Chief Investment Strategist of Strategas Research Partners,the economic fundamentals are the same as they were at the end of February.Interest rates are stable,and many companies are supporting stock prices by buying back their own shares.Serat Sethi of Douglas C. Lane Associates remains cautious,however.He advises a broad-based allocation to protect against risks which many may have already forgotten about.

Genentech Expands

Genentech(DNA),the largest biotech company in terms of market capitalization,has a vast pipeline.It is currently developing thirty new drugs and has an inventory of thirteen new molecules.These prospects follow the blockbusters Herceptin(breast cancer),Avastin(late stage colon cancer) and Lucentis(macular degeneration).The latter drug can literally restore sight to the blind.To accomodate its research,DNA is erecting eleven new buildings on its San Francisco Bay Area campus.The volume of its quality work looks to ensure continuing benefit to the chronically ill,as well as its shareholders.

Easter Break

As we approach the Easter holiday,I wish all of you a blessed spring.Thank you for visiting this site,Andrew Taylor