AAM Weekly Review May 21 2010

Weekly Market Wrap: The volatility continues as the S&P 500 index drops 4% this week to finish at 1,088.  4 of the 5 days were down but Friday was a solid up day hopefully leading to a better week next week.   Gold, Oil and the Dollar were all down on the week as well.  Gold was down 4% to $1,177 per oz, Oil was down 2% to $70.04 per barrel, and the Dollar dropped 1% against other major world currencies to $85.36.

Mortgage rates moved slightly lower this week. The Schwab Bank 15-year rate is now at 4.33% and the 30-year rate is at 4.96%. These rates are as of 5/21/2010 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:

We are officially in correction mode this week with the markets falling 10% from their highs of the year.  Keep in mind that market corrections are a normal part of investing in the stock market and are healthy for them.  I know they are not much fun to go through unless you have cash to invest and then it becomes an opportunity to buy a little cheaper.  My opinion is that this is an opportunity more than the start of something worse but only time will tell.

This may be a good time to reiterate my views on investing.  I believe you should segment your portfolio between short-term needs and long-term needs.  This assures that you have money available if the market goes down to meet your goals without having to sell at losses.  It also allows you to maintain your long-term focus and ride through the waves of the market.  Investments should be diversified and invested in mostly low cost investments such as index fund and exchange-traded funds.

Some of the highlights of my week include:

  • Worked on a debt snowball to show a client when he can be out of debt if he uses his paid off debt to roll the payment onto his next debt.  Let me know if I can do one for you. 
  • Delivered a financial plan to a new financial planning client to get them started towards meeting all of their financial goals.
  • Gathered some additional information from an existing client to evaluate whether or not to do a Roth conversion based on how it will impact his tax return.
  • Attended a Grandville/Jenison Chamber event around social networking and developing alliances.

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.

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