AAM Weekly Wrap as of August 8, 2010

August 7, 2010

Weekly Market Wrap:  The stock markets pushed forward this week with the S&P 500 finishing at 1,122 up 1.8% on the week and now up 0.59% for the year.  Gold and Oil finished the week higher as well.  Gold was up 2% at $1,205 per oz and Oil was up 2.3% at $80.70 per barrel.  The dollar was down 1.6% against other major world currencies at $80.33.

The week started with a large stock market rally based on positive corporate earnings news (65% of companies have beat estimates) and signs of growth in manufacturing and construction spending.   The markets moved lower on Tuesday with pending home sales and factory orders coming in below estimates as well as stagnating personal spending and incomes.   Wednesday brought a rally again as ADP reported job additions and service sector expansion.   Thursday was down slightly as there was an increase in jobless claims.  Friday also brought a small loss as jobs were added but not at a fast enough pace for investors.

The data continues to point to a slow-down in the economic recovery but still a recovery.  At this point a double-dip recession appears to be unlikely but it will probably be a slower recovery than most would like.  We are still waiting for the job situation to make substantial improvements and until it does the markets may continue to trade in this range.

Mortgage rates maintained its low rates for the week.  The Schwab Bank 15-year rate is now at 4.09% and the 30-year rate is at 4.72%. These rates are as of 8/7/2010 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 a company that will help me maintain my compliance system and get some of those tasks off of my plate so that I can concentrate on helping my clients reach their goals.
  • Voted – I hope you did too!
  • Attended an FPA (Financial Planning Association) of Michigan luncheon to learn more about long-term care planning.  We discussed the emotional decisions involved and where to get information to make good decisions as well as what is the advisor’s role in this process.
  • Met with 3 new prospects and 5 existing clients.  Helped them with planning decisions such as where to get cash flow in retirement while keeping an eye on taxes, planning for an upcoming retirement in the next year, rolling over a 401k from a past employer, figuring out where to get the money for a new truck and 5th wheel to make retirement more enjoyable and where to get the cash to just pay the day-to-day bills.

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.

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