June 26 2010
I missed last week’s Market Wrap due to a trip to Ludington with the family. Hopefully you did not miss my update too much!
Weekly Market Wrap: The market continued to move up and down with world news and US economic news. The S&P 500 finished this week at 1,077, down 3.7% on the week. Oil gained 2.4% on the week to $79.03 per barrel. Gold was flat finishing the week at $1,255 per oz. near its highest levels of the year. The dollar was also flat against other major world currencies at $85.28.
The week started on a positive note Monday morning with China deciding to allow its currency to appreciate against the dollar. This could be positive news for US companies, allowing them to better compete against China by making our goods cheaper there. By the end of the day, however, the markets had moved lower and the tone was set for the week. Economic news was less than stellar with a large drop in home sales and 1st quarter GDP being revised downward. The fact that the Financial Reform Bill is near completion and the markets will soon know what they are dealing with gave the market a small boost on Friday.
Mortgage rates continue to stay at historical lows. The Schwab Bank 15-year rate is now at 4.31% and the 30-year rate is at 4.85%. These rates are as of 6/25/2010 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:
- Volunteered at a charity golf outing for the Girls and Boys club of Grand Rapids. We raised about $5,000 for the cause and I witnessed a few individuals who were able to golf 100 holes in one day. I am looking forward to golfing in the event next year!
- Helped a client update their estate plan by reviewing and getting the new information to the attorney.
- Worked with another new client to help them get their estate plan set up. Met with them and their attorney to get it started.
- Met with an individual who purchases and maximizes the potential of cellular towers and turns them into an investment for others. It looks like a good way to produce cash flow.
- Began the planning process for another new client who wants unbiased advice by hiring a NAPFA® member.
- Helping a new client get organized and transfer many assets into their revocable trust to avoid probate and reduce the administrative burden of their estate.
- Enjoyed watching my children at their basketball camps and final T-ball games of the season.
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.