Total Returns %

1 Week

1 Month 3 Month 1 Yr Avg 3 Yr Avg 5 Yr Avg

YTD

Dow Jones

-0.26

5.58

12.03

17.01

-5.69

3.21

5.98

NASDAQ

-0.44

8.91

12.82

15.23

-4.72

1.96

4.48

S&P 500

-0.18 6.26 12.15 13.58 -7.43 0.73

4.35

Russell 2000

1.29

8.83

12.68

17.88

-4.89

1.70

9.63

MSCI All Country World

0.50

6.97

14.98

8.93

-9.65

0.40

2.42

Source: Morningstar, Inc.  Data through 10-01-10 

The third quarter 2010 came to a close and the major equity indexes earned double-digit returns, wiping out most of the damage of the second quarter.  September 2010 went against the historical trend of being a down month for equities; equities had their best September performance since 1939.  Mergers throughout the month contributed a lot to the confidence in the markets. 

Unfortunately, the Dow Jones four-week winning streak came to an end this week.  Gold set record highs closing above $1,300, which is a sign of continued caution for investors.  Oil rose above $80/barrel, a seven-week high, as supplies declined.  As expected, investors locked-in some profits in the final days of the third quarter as funds and institutions began repositioning portfolios for the last 3 months of the year.

The government finalized its books on the second quarter by releasing the latest GDP revision.  The economy grew by 1.7% during the three month period ending June 2010, which met expectations, but was slower than the initially reported 2.4%.  One primary confidence index fell to its lowest level since February 2010.  Personal income and spending rose slightly in August, though much of the increase was due to discounted prices; the levels reported are not consistent with an extensive economic recovery.  While manufacturing expanded for the 14th straight month, the pace declined in September.

Overseas, while growth concerns continue to rise across Europe, China reported strong manufacturing results for September.

The upcoming week will include the anticipated release of unemployment data.  While the jobless rate is expected to remain just below 10%, the private sector additions will be closely monitored.

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 https://www.chladekwealth.com.

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