July 24, 2010
Weekly Market Wrap: The markets rebounded with its 2nd positive week in the last 3. The S&P 500 surged up 3.6% to close over the 1,100 mark at 1,103. It is the first time the S&P closed above 1,100 since June 21 and the index is now almost back to even for the year, down 1%. Oil was also solidly higher on the week up 4% to $78.98 per barrel. Gold was down slightly at $1,187 per oz. or ½%. The dollar was flat against other major world currencies at $82.49.
Earnings season did not disappoint with many companies reporting better than expected earnings. Finance reform was signed into law this week and the senate declared Cap and Trade legislation will not get enough votes to move forward (I think this was the biggest story this week that was not widely discussed). Bernanke spoke on Wednesday sending the markets significantly lower indicating that there is no more government stimulus in the works. I was happy to see this regardless of the market’s reaction. It is time for the private sector to take over this recovery and move the markets forward. No more big government stimulus spending. Some spending is still in order as unemployment benefits were extended once again.
Mortgage rates continued to hold steady at historical lows. The Schwab Bank 15-year rate is now at 4.33% and the 30-year rate is at 4.78%. These rates are as of 7/23/2010 and assume no points, no origination fee and a $250,000 mortgage.
The Week at AAM (to highlight what I do for clients and how I am different than most advisors) :
Some of the highlights of my last week include:
- Camped for most of this week with my family. I enjoyed the time away.
- Opened a new account to hold a non-publically traded stock in an IRA account and complete a Roth conversion from a profit sharing plan. I like working out-of-the-box now and then and this is one of the things that can set me apart from many of the advisors out there.
- Helped a client update their estate plan and pre-qualify a mortgage with Schwab so they can look for their next home.
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.