Market commentary

President Obama’s address to Congress, while rousing, proved to be little more than the trial balloons had suggested. Global and U.S. stock markets were disappointed in the lack of details, and there is not much different in this plan from the previous stimulus plan; lots of borrowed money going to support state and local governments, the long term unemployed, etc. Business leaders, analysts and many economists continue to state the obvious; the one thing that continues to be missing from the discussion is getting to a point of clarity on Dodd-Frank and "ObamaCare". It is the uncertainty as to what the final regulations will look like that makes business reluctant to hire workers and consumers reluctant to purchase a new home, a first home or to move up. As one analysis I read stated, “We don't need more monetary stimulus. We probably need less fiscal stimulus than most expect. What we need is clarity, and that appears not to be on the table for either side”.

As of this writing the DOW is lower by 230 points and bonds are flat from Thursday’s close. Mortgage prices have improved slightly from Thursday.