Weekly Market Wrap: The stock markets rebounded this week with the S&P 500 gaining 2.5% to 1,092. Gold and Oil were higher on the week as well. Gold finished at $1,227 per oz. up 0.66% and Oil was up almost 4% at $74.24 per barrel. The Dollar finished down about 1% against other major world currencies at $87.40.
It was a good week for stocks, rebounding from last week’s losses as Europe stayed out of the headlines and the week ended with a positive consumer confidence report. One interesting report this week was a theory that companies were going to show more profits now in an attempt to pay taxes at current rates rather than when tax rates increase in the next few years. That came out of a report that companies are holding more cash on their books than they have held since in 1952. Although this could be bad for the market in the future with lower earnings there are many positive results that could happen. If companies look to increase profits by not spending now they may end up just pushing that spending into the next few years which would help the economy at that point. Although higher tax rates in the future may drag on economic growth I think that our rebounding US economy can overcome it.
Mortgage rates moved slightly lower again this week. The Schwab Bank 15-year rate is now at 4.375% and the 30-year rate is at 4.94%. These rates are as of 6/11/2010 and assume no points, no origination fee and a $250,000 mortgage. If you have the equity available in your home and have thoughts of refinancing now would be a great time to get that done. Give me a call and I can set up a meeting with someone to help get it done for you.
The Week at AAM:
Some of the highlights of my week include:
- Introduced a client with mortgage questions to a mortgage professional and now they are on their way toward saving some money!
- Met a new estate planning attorney who really takes an interesting approach and emphasizes client service to create a real unique client experience.
- Met new business owners and others through a couple of speed networking events hosted by the Grandville-Jenison Chamber of Commerce.
- Purchased a new program that will allow for account balances to be downloaded directly into my financial planning program from client‘s accounts both managed with me and outside of my management. It will make my job a little easier as well as give my clients a place to get an updated snapshot of their financial position with a few clicks. I am looking forward to rolling this out to everyone!
- Two more T-ball games with my 5 year old. He loves his baseball!
I hope you had a great week as well. Please let me know if there is ever anything I can do for you or if something has changed in your financial situation to warrant a meeting or a change of investment policy.