Large-value companies continue to lag this year as they did last year. Even though value and growth designations are blurry, most professionals look at the Dow Jones industrial average as a “value”-heavy index.
The DJIA is a weighted average of 30 large industrial stocks. The S&P 500, which includes the Dow 30, was up 3.5 percent last year and is up 1.1 percent this year.
Meanwhile, the Dow 30 lost 0.5 percent last year and is down the same thus far in 2006.
Oil is the big story, as it rose to $68 a barrel last week, an increase of 7 percent for the week.
Unrest in Nigeria and problems with Iran’s nuclear ambitions have rattled the markets and caused concerns about supply disruptions in the energy markets.
Further disrupting the markets, Osama bin Laden was again broadcast on audiotape threatening the United States.
Ford Motor Company (symbol: F, current quote: $8.36) announced a massive restructuring with accompanying layoffs.
This icon of American business has fallen prey to a stifling bureaucracy that contributed to a $1.4 billion loss in the first three quarters of 2005.
The market’s strong upward momentum since mid-October may be slowing as these gains are digested. This is a normal occurrence and is considered healthy by most professionals.
Rick Glaze is president of Glaze Capital Management of Los Altos and a registered representative offering securities through First Allied Securities Inc.
