Your investments and the economy

We saw the big 360-point Dow downturn Thursday. What happened last week?

"We had a very volatile week in the markets due to the mixed economic news that we had. It was a mixed bag. You had a strong domestic product number that came out. But it was overshadowed by some weaker numbers, in terms of manufacturing data and concerns about the credit market."

What did you think of the Fed cutting interest rates by a quarter point to 4.5 percent?

"The (Federal Reserve Bank) did what was expected, from the standpoint of coming out with a quarter point rate drop … What was a surprise to some was the commentary that came out indicating that this was going to be more of a neutral level, the Fed would be on hold, because it viewed concerns over inflation and concerns over economic weakness to be pretty much balanced."

What do you think of soaring crude oil prices?

"It (price) is being very strongly pushed by global demand. It's the same old story. What you have got happening, you've got continued strong demand out of Europe, the United Kingdom, out of the United States and developing countries and extraordinary demand from emerging markets, particularly China … we could potentially see $100 or more than $100 a barrel (of crude oil) before it is all said and done."

When are crude oil prices going show at the pump?

"I think you're going to see oil prices affect gasoline prices as gasoline and other refined oil products -- fuel oil, jet fuel, other things -- see some reduction of inventory … If you see those inventories weaken then you'll see the cost of that inventory translate into higher gasoline prices and higher refined product prices as well. And there's expectation that that is going to happen."

Why are mutuals and investors turning toward China, India and emerging markets?

"Emerging markets have done exceptionally well, in terms of investment return, over the last couple of years. As an asset class for investors, it's really (emerging markets) and gold that are the highest returning assets, this year to date and the last 12 months."

What might move markets this week?

"Early in the week we're going to get the (Institute for Supply Management) service numbers … The market expectation is for continued strength in the services sector … Later in the week you will end up with export-import prices and trade balance information … Those are (some of) the primary data elements the market will be looking at (this) week."