Dog Days of Summer

According to Wikipedia, the Dog Days (Read: Dog Days of Summer) were believed to be an evil time when “the Sea boiled, the wine turned sour, dogs grew mad, and all other creatures became languid; causing to man, among other diseases, burning fevers, hysterics, and phrensies”- Brady’s Clavis Calendaria, 1813. Add to that, high blood pressure, stress, stomach ulcers and any other malady that permeates the investment community and Brady is spot on. While the Old Farmer’s Almanac says the Dog Day’s should have ended on Saturday it looks like they’ll persist at least until the extended Labor Day weekend here in the U.S. - from a financial market standpoint- as more indications of a global economic slowdown and sovereign debt fears keep things interesting. Japan, the world’s #3 economy, released data  today showing that GDP grew at a dismal pace of just .3% in the second quarter. Meanwhile, the mercury is  rising in Europe, along with Spanish and Italian bond yields that continue to hover at unsustainable levels making potential bailouts for both countries seemingly inevitable. Italy’s debt load is said to be 123% of output, second only to Greece in the euro region. There are no economic reports on tap for today and earnings season is coming to a close so expect the week to start off with light trading volumes as investors ponder what to do next ahead of the next central bank meetings. Have a great day!