July 3, 2010
Happy Independence Day everyone!
Weekly Market Wrap: The market moved lower every day this week with the S&P finishing 5% lower at 1,023. Gold and Oil pulled back this week as well. Gold finished the week down 3.4% at $1,212 per oz. and Oil was down almost 9% at $72.14 per barrel. The dollar also fell this week as measured against other major work currencies down 1% to $84.42.
On Monday the news was fairly good with the finance reform bill nearing completion and personal income and spending showing slight increases but it was not enough to move the markets higher. The selling intensified on Tuesday with lower consumer confidence and the possibility of slowing growth in China. The market continued to move lower the remainder of the week with little good news to bring in buyers. Spain is facing a possible downgrade of its debt, May factory orders fell, jobless claims rose and the jobs report disappoints by adding a less than expected 83,000 jobs in the private sector.
This could be a lull in the recovery or the start of something worse for the economy. At this point it is too early to tell but I believe that it is an opportunity to purchase low if you have a long-term horizon. I think things will get back on track and continue to improve.
Mortgage rates continue to stay at historical lows and moved slightly lower last week. The Schwab Bank 15-year rate is now at 4.25% and the 30-year rate is at 4.81%. These rates are as of 7/2/2010 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 last two weeks include:
- Delivered a plan to a new client to show them that they are on track to meeting their financial goals and live the retirement they want.
- Met with a new prospect that will definitely benefit from going through the financial planning process.
- Reviewed client portfolio’s and did some rebalancing.
- Spent most of the week vacationing with my family at Cedar Point and had a great time! One of my goals for the year was to get out of the office more and spend some time with the family. Thank you to all of my clients who help to make that possible!
I hope you had a great couple of weeks 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.