The capital markets greet September with many questions. But whatever perils or opportunities await, the year-to-date tally doesn’t look all that bad.
August was a rocky month, but the bulls remain the dominant species on Wall Street. That may change, of course, but for the moment the numbers speak for themselves. Everyone’s favorite benchmark–the S&P 500–is up 5.2% on a total return basis in 2007 through August 31. Not bad, if you consider that on an annual basis that represents above-average performance.
In fact, the major asset classes are still bubbling in 2007. Some may be battered a bit after August’s slings and arrows. But the upward bias appears intact on a collective basis. That’s not to say that smooth sailing’s assured for the remainder of the year. But one can at least look at the trailing numbers and dream.