Weather is here-wish you were beautiful

January was going so well, with back-to-back good weeks in the market.  Then it turned.  .  .  Markets falling & Snow falling.  .  .Most of us said so-long to January with double-digit snowfalls.  The final weekend of the month consisted of shoveling and tv watching.  Even the Pres took in some hoops as he attended the G'Town victory of Duke.  The Bulls must have seen the weather forecast as they went into hiding a couple weeks ago.  The S&P finished January down 3.7%.   So much for a re-appointment of Bernanke helping the markets.  At least the Chairman won't be among the unemployed when January non-farm payrolls are released Friday.

Agree or disagree but the FED has no intention of raising rates anytime soon.  We won't see money market rates increasing for the foreseable future. The continues to force income investors to seek alternatives for yield.  Don't be surprised if utilities to be among the top choices.  The expected weakness in the dollar hasn't happened, nor has the continued strength in commodities. Those trades seemed like sure-things as we flipped the calendar.  GDP was up 5.7% but the market seemed unimpressed.

More earnings are out this week led by Kraft, Exxon and Aflac.  Pfizer and Cisco report later in the week. During this month, several retailers will let us know just how successful the holiday season was. 

Over 20 years ago,  Marty Zweig made popular the phrase "don't fight the FED".  It used to refer to interest rates but now it also includes any place the US Government has placed investments.  I'm not suggesting to run and buy GMAC bonds but realize where our taxpayer-dollars are invested.  Those won't go bad.  And they've placed a big bet on AIG, multiples more than GM.  The government is more of a consideration in formulating an investment portfolio than ever before.