Total Returns %

1 Week

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

YTD

Dow Jones

0.51

4.75 7.52 12.96 -4.78 4.20

8.35

NASDAQ

2.89

6.75 13.44 14.61 -4.06 3.75

8.93

S&P 500

0.96

4.69 7.82 9.45 -6.67 1.96

7.15

Russell 2000

1.36

7.88 11.15 14.26 -3.97 3.50

13.52

MSCI All Country World

1.23

5.88 10.85 6.14 -9.11 1.78 5.81

Source: Morningstar, Inc.  Data through 10-15-10

This past week saw the newest banking black eye appear.  Major banks are freezing foreclosure processing while the “robo-signings” of thousands of affidavits are being investigated by the government.  Unfortunately, freezing the foreclosures will put even more strain on the housing market, as approximately 30% of homes sales currently involve foreclosures. 

Equities rose slightly, while bonds fell, on news that the Fed appears ready to move forward with a stimulus program that will involve buying bonds.  The Fed is also considering actions that will temporarily raise the level of inflation above the typical target of 2%.  Daily volume on the NYSE picked up to 5 billion shares, which was the highest in 3 months.  The Producer Price Index (PPI) showed that wholesale prices rose for the third straight month, due mostly to an increase in food prices; the remaining consumer prices however were flat for September, showing that inflation still has yet to take hold.  Consumer sentiment dropped to its lowest level since July, though September retail sales rose for the third straight month; investors viewed this as a good sign for the upcoming holiday shopping season.

China made the news again as the U.S. domestic trade deficit rose in August.  The U.S. has a record-high trading deficit with China, and China has become the largest US partner.  Many politicians are becoming increasingly frustrated with China undervaluing their currency, and implementing trade policies that limit exports into their country.

This coming week, the Fed Beige Book will report national and regional economic data.  Apple, IBM, Citigroup, Bank of America, and Amazon will all report earnings as well.

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.

All written content on this site is for information purposes only.  Opinions expressed herein are solely those of John P. Chladek, MBA, CFP®, President, Chladek Wealth Management, LLC.  Material presented is believed to be from reliable sources and we make no representations as to its accuracy or completeness.  All information and ideas should be discussed in detail with your individual advisor prior to implementation.  Investment Advisory services are offered by Chladek Wealth Management, LLC, a registered investment advisory firm in the State of Kansas.  The presence of this web site on the Internet shall in no direct or indirect way be construed or interpreted as a solicitation to sell or offer to sell investment advisory services to any residents of any state other than the State of Kansas or where otherwise legally permitted.