Market Overview February 26, 2010

While Consumer Price Index increased 0.2% in January, the index for all items less food and energy fell 0.1%, indicating that consumers are not willing to spend more money except paying for the necessary living costs amidst high unemployment rates, declining personal wealth due to the drop of home prices, and bearish news ranging from clogged foreclosure homes in supply and upcoming waves of the reset of the rates of accumulated adjustable rate mortgage to sovereign debt compound spirals in countries such as Greece. The anxiety fuel by the negative news sent Consumer Confidence Index from 56.5 in January to 46.0 in February (1985=100). Although signs of economic recovery have been detected here and there, the recovery is vulnerable as long as individuals’ consumption is not on a steady rise. Dow Jones Industry Average closed at 10,325 today. Given the great deal of uncertainty in economic growth, the stock market is likely to be volatile in 2010.