|Total Returns %||
|1 Month||3 Month||1 Yr Avg||3 Yr Avg||5 Yr Avg||
|MSCI All Country World||
Source: Morningstar, Inc. Data through 10-29-10
The major indexes moved very little this week. There was enough bad news to offset the good news, and everyone seems to be anticipating the election and Federal Reserve statement next week.
Existing home sales were better than expected, but were still lower than the levels seen earlier this year when there were tax incentives for buyers. Consumer confidence improved, but it is still at an extremely low level. When excluding the transportation sector, the durable goods report revealed slow manufacturing growth. Initial jobless claims and the four-week moving average both fell. And on Friday, the 3rd quarter GDP was reported to have grown by 2%, which is slow but in-line with the economists’ expectation.
This coming week is definitely going to be eventful. The elections take place on Tuesday, and the Fed is expected to announce the highly anticipated QE (quantitative easing) program on Wednesday. Don’t be surprised to see the markets move big in either direction, depending on how Wall St. feels about the outcome of both events. We’ll also see some unemployment numbers released to finish off the week. Fasten your seat belts!
The key to navigating this market is to look past the headlines to what possible outcomes could appear based on the actions of global governments. It is no surprise that emerging markets, TIPS, energy, materials, gold, silver, agribusiness, and real estate are all leading areas in the market in the last month. If you do not recognize the significance of the above list, they are all categories that hold up, or prosper, in inflationary environments. Clients of mine will recognize these areas as they hold ETFs in a number of these areas.
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.