The fireworks were plentiful this week (and not just in Beijing).  Despite more negative news on the Freddie/Fannie front (and the Merrill, Citi, and UBS fronts as well), investors got into the positive Olympic spirit and took the equity market to much higher levels.  The primary catalyst was the continued plummeting of oil and other commodities as the speculation game actually may be coming to an end.  Oil has now plunged over $30/barrel over the past few weeks and the threats of inflation have subsided as well. While consumers remain cautious, economists hope that declining gas prices will lead to more disposable dollars for back-to-school and early holiday shopping.  Then again, while the current trend is definitely the investor’s friend, beware that false reversals and dramatic price swings have happened in the past.  So, enjoy the newfound positivity (is that a word?) while it lasts (both in the market and at the Olympics).

Attached/linked please find And That’s The Week That Was, the Brounes & Associates market/economic commentary for the week ended August 8, 2008.

Coming up in the week ahead:  Trade Balance (Tuesday), Retail Sales (Wednesday), CPI (Thursday), Industrial Production (Friday)

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