Another positive week for stock prices, as it appears the banking sector mess was contained to just a few poorly managed banks, has been adequately resolved, and will not be a drag on the overall economy.
This price recovery shows once again that institutional investors were correct in holding their stocks the past few weeks, while amateur investors who panic sold at momentarily depressed prices did the wrong thing. Again.
Also contributing to the rally was Friday’s inflation data which did show at least modest signs of decreasing.
Most of our stocks were up, which helped improve long gains or at least reduce losses, while our shorts were a mix of new weekly lows and others rising to give up some of their downward gains.
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