Market Commentary: Week Ending 12/3/2010

Total Returns %

1 Week

1 Month

3 Month

1 Yr Avg

3 Yr Avg

5 Yr Avg

YTD

Dow Jones

2.71

1.86

9.67

12.81

-2.28

3.64

11.99

NASDAQ

2.67

0.53

16.07

18.15

-1.45

2.78

14.26

S&P 500

3.02

2.48

11.45

13.61

-3.78

1.48

11.91

Russell 2000

3.26

5.88

17.92

30.08

1.30

3.21

22.28

MSCI All Country World

3.14

0.79

10.43

7.46

-7.47

0.97

7.58

Source: Morningstar, Inc.  Data through 12-3-10

Global markets put in a solid week after a tough Thanksgiving week.  The big market mover this week was strong economic news from China and the US, as well as an ease in European fears.  I’m sure we haven’t seen the last scare come from Europe, but it is obvious that Europe is going to go to any length possible to bail out their struggling nations.  Thus far, bailouts have been well-received by the markets.

The manufacturing and services sectors both expanded in November (for the 16th and 11th straight month respectively).  Consumer confidence rose to its strongest level since June 2010.  Construction spending rose for the second consecutive month with an increase in residential expenditures.  Even the bad news wasn’t all that bad – Factory orders fell for the first time in four months, but not as low as some had predicted. 

Overseas, Ireland accepted a $112 billion bailout, and Spain or Portugal could be next.  However, China’s manufacturing sector had another strong month, and their government appears committed to adjusting policy to fight-off inflation. 

As is normal for this time of year, analysts will continue to study every piece of retail sales activity to try and predict how successful this shopping season will be.  Do the early strong sales numbers indicate consumers are willing to spend more this year?  Or are the high numbers just a result of everyone taking advantage of the Black Friday/Cyber Monday deals, and most people are now already done shopping for the season?  Let the guessing begin!

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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