June 4 2010
Weekly Market Wrap: The market momentum is taking the markets lower as problems in Europe have spread to Hungary and the US posted a worse than expected jobs report. The S&P 500 finished 2% lower this week at 1,065. Gold was up 1/2 % to $1,219 per oz, Oil was down 3.3% to $71.51 per barrel, and the Dollar gained another 1.8% against other major world currencies to $88.29.
Stocks were starting to look better this week until Friday’s jobs report and Hungary reporting that they may have problems meeting their obligations. The biggest disappointment of the jobs report was that most of the new jobs were created by the government, not the private sector. However, other statistics point to a longer work week and those that have jobs have to work harder to keep up with demand. At some point this will turn to new jobs being created in the private sector when business owners realize the recovery is for real and the business is sustainable. The biggest question is whether or not the economy can grow to the point where hiring is necessary. The sooner it does the better we all will be.
Mortgage rates moved lower this week. The Schwab Bank 15-year rate is now at 4.42% and the 30-year rate is at 5.00%. These rates are as of 6/4/2010 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:
- Enjoyed a beautiful Memorial Day and long weekend. Thank you to all of the veterans that made this possible!
- Strategized with an existing client and a new prospect on how to help them achieve financial independence.
- Learned about a veterans benefit that helps pay for nursing care, both in and outside the home. If you are a veteran or the spouse of a veteran and need help with your daily living activities we should talk.
- Helped facilitate and witnessed the completion of a new clients estate planning.
- Celebrated my 16th anniversary with my wonderful wife!
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.