|Total Returns %||1 Week||1 Month||3 Month||1 Yr Avg||3 Yr Avg||5 Yr Avg||YTD|
|MSCI All Country World||0.70||-0.33||6.66||3.63||-8.60||-0.42||-1.90|
Source: Morningstar, Inc. Data through 09-10-10
The trading volume in the markets was light due to a shortened trading week (Labor Day) and the Rosh Hashanah holiday. Equities rose slightly as investors continue to be cautious of the mixed economic news that is reported.
The trade deficit was reported for July, and it declined by the largest amount in almost 2 years as exports surged and products made in America were in demand once again. Jobless claims fell to their lowest level in two months, and the 4-week moving average dropped as well. This gave investors hope that there is a potential rebound in labor, or at least less fear about further job cuts going forward.
The Fed and Ben Bernanke also reported last week that domestic economic expansion is continuing, though “with widespread signs of deceleration.” The Fed reports indicated that there is positive activity in the manufacturing sector, though there are still concerns of a slowdown. The reports also indicated a potential increase in consumer spending.
The upcoming week will include data from the retail and manufacturing sectors, as well as inflation data. Most analysts are looking for the first signs of price increases and expectations of the Fed raising interest rates for the first time in a while. The retails sales report will give some insight into the confidence of consumers, and how successful the back-to-school shopping season was for retailers.
With all this said, I am still being cautious with my clients’ portfolios. I am cautiously optimistic on certain industries in the U.S. and confident in a number of emerging markets.
Would you like an analysis of your current investment portfolio? Call me to schedule your free consultation- 913-693-7918.
John P. Chladek, MBA, CFP® is the President of Chladek Wealth Management, LLC, a fee-only financial planning and investment management firm specializing in helping families and couples who are not yet retired realize their financial goals. For more information, visit http://www.chladekwealth.com.