November 13, 2010
Weekly Market Wrap: The markets experienced a bit of a pullback this week as the recent run-up in the markets took a break. For the week the S&P 500 was down 2.2% dropping back just below the 1,200 mark to 1,199. Gold and Oil dropped on the week as well. Gold was down 1.9% to $1,368 per oz. and Oil was down 2.8% to $84.60 per barrel. The dollar was up 2% this week against other major world currencies at $78.08.
In 2010 the indexes are now up: The S&P index +7.54%, The Dow Jones Index +7.33%, The NASDAQ + 10.98%, The Russell 2000 + 15.01%, EAFE International +3.18%.
The markets struggled most of this week after the recent gains. On Monday the market dropped 3 as there was little economic news to move the market higher. Despite an increase in small business optimism and a larger-than-expected rise in wholesale inventories the market moved 10 points lower on Tuesday. Positive economic data moved the market higher by 5 points on Wednesday including a drop in jobless claims, reduction of the trade deficit, a rise in mortgage applications and cooler import prices. Little economic news and Cisco’s poor outlook pushed the markets lower on Thursday by 5 points. A better-than-expected reading in consumer sentiment was not enough to move the markets higher on Friday. The S&P drop another 14 points as Euro-debt concerns resurfaced once again.
Mostly positive economic news was not enough to keep the rally going this week. It was a wait-and-see kind of week as the fed began its implementation of QE2 to stimulate the economy. The markets are also waiting to see what congress will do regarding the possible extension of the Bush tax-cuts, the AMT patch and a busy week on the economic calendar.
Mortgage rates rose last week. The Schwab Bank 15-year rate is now at 3.875% and the 30-year rate is at 4.56%. These rates are as of 11/12/2010 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:
- Worked on my compliance program to update my policies and procedures manual based on some of the new regulations.
- Attended a Chamber open house at Standale Interiors. What a beautiful facility they have and another place I need to keep away from my wife J.
- Traveled to Lansing to a seminar hosted by the State of Michigan regarding the transition of advisors from SEC regulation to State regulation.
- Hosted a Linked-In webinar co-sponsored by the Grandville-Jenison Chamber of Commerce in my office. One more webinar next Wednesday!
- Attended the Jenison/Grandville Chamber breakfast event on Friday at Sunnybrook Country Club to learn more about the West Michigan economic environment and projections.
- Reviewed and rebalanced client accounts, met with clients and worked on helping them achieve their long-term financial 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