Total Returns %

1 Week

YTD
Dow Jones Industrial Average

+0.72%

+2.54%
NASDAQ Composite

-2.39%

+1.38%
S&P 500 Index

-0.76%

+2.04%
Russell 2000

-4.26%

-1.34%
U.S. Aggregate Bond Index

-0.11%

-0.13%
MSCI All Country World

-0.90%

+1.13%
Source: Yahoo! Finance.  Data through 1-21-11

Global markets softened up a bit this week on news of further inflation concerns in China.  In addition to the news out of China, while quite a few US companies reported good earnings, large financial companies like Goldman Sachs and Bank of America had disappointing results.  

Many of the technical indicators I track to get a sense of the breadth of the market are starting to look quite weak.  This comes as no surprise as this market has run pretty far, and the steam looks to be running out for now.  A reasonable pullback here (5-10%) could set the market up for further gains through summer.  If the market should stretch much further, I fear that when a drop comes, it could be deep (10% +). While a market correction is no fun to experience, it’s a necessary evil, and provides for good buying opportunities 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 http://www.chladekwealth.com.

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