Total Returns %

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

YTD

Dow Jones

-2.10

1.78

9.16

12.76

-2.01

3.64

9.85

NASDAQ

-1.95

2.47

16.40

16.70

-1.14 2.96

11.49

S&P 500

-2.10

2.69

11.23

12.53

-3.73

1.54

9.42

Russell 2000

-2.32

3.43

16.94

25.53

-0.68

2.90

16.22

MSCI All Country World

-2.35

2.32

12.19

8.49 -7.19

1.39

6.77

Source: Morningstar, Inc.  Data through 11-12-10

This past week was tough on global markets.  The negative week was a little surprising considering some positive economic news was released.  Some of the recognizable positive news for the week was a meaningful drop in unemployment filings, an increase in consumer confidence, and more corporate buyouts in the retail space.  The unrecognizable good news was the rumor Friday that China will be raising interest rates to ward off inflation.  This is good news as the Chinese are trying to cool their hot economy versus letting the economy overshoot.  

Recall that about one month ago (Oct. 18) China made a surprise increase in rate; the market sold off for a few days, but then whipped right back.  When the Chinese hint at or actually move interest rates up, the market takes it as negative news.  In reality, raising rates is the responsible thing to do versus over-stimulating an economy.

The other weight on the markets currently is the ongoing saga in Europe.  This time, instead of Greece, Portugal and Ireland are making headlines concerning their debts.  Over the summer there was a lot of worry over Greece and its debt problems spreading.  In the end, the EU and IMF brokered a temporary fix.  This looks like a very similar situation and the EU is stepping in to try to back stop these struggling countries.  The negative effect of the problems in Europe is that it drives down the Euro, which pushes up the dollar.  This is not what our government is looking for since a strong dollar increases the cost of our exports.

In addition to more earnings reports this upcoming week (Wal-Mart, Target, Gap, etc.), important retail and inflation data will be released 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.

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