Weekly Market Wrap: Markets rallied on Friday driving the indexes up once again. For the week the S&P 500 gained about 2% closing at 1,149. Gold and Oil were both higher as well. Gold finished up 1.7% to $1,296 per oz. and Oil ended the week 4% higher to $76.49. The dollar was 2.6% lower on the week as compared to other major world currencies at $79.29.
The S&P 500 is now up 3% on the year and over 9% for the month of September.
The week started with a strong rally on Monday as the market moved up 17 points on news that the recession officially ended last June and a rather flat home sentiment figure. On Tuesday better than expected housing starts and no changes out of the Federal Reserve meeting were not enough to maintain the rally as the market fell 3 points. Wednesday the S&P index shed another 6 points as home prices dropped 3.3% and disappointing news from Adobe sent its shares down 20%. On Thursday a gain in the leading economic indicators was not enough to offset an increase in jobless claims and the Blockbuster bankruptcy filing as the market fell another 9 points. Friday’s positive durable goods orders news sent the market much higher to finish the week with a gain of 24 points for the S&P 500 index.
Negative job news on Thursday was not enough to stop September’s rally as the market enjoyed another positive week to push further into positive territory for the year. It also pushed through a significant technical level of 1,130 in strong fashion on Friday which could set us up for continued higher moves towards the 2010 high of 1,217 on April 23.
This has been the time of the year that has brought significant pain to the market over recent years but could finish with significant gain in 2010. It just goes to show you that it is tough to try and time the market or get out because of the time of the year because a rally could be right around the corner.
Mortgage rates dropped again over the last week. The Schwab Bank 15-year rate is now at 3.97% and the 30-year rate is at 4.54%. These rates are as of 9/24/2010 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:
- Met with my Grandville-Jenison Chamber leads group. I love be able to help other business owners and professionals build their business and help clients get the great service they deserve.
- Attend a Chamber open house at the Art Van store near my office.
- Visited with a new prospect to introduce what I do and they were also preparing to head to the hospital to have their second child! I hope all went well.
- Had breakfast with a local risk manager to learn more about how he helps business owners identify business risks and then implement solutions to manage and monitor them.
- Shopped a client’s property and casualty policy to a few agents to get the best coverage.
- Continued to review client’s plans and portfolios to help them towards their goals.
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.
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC