Total Returns %

1 Week

YTD

Dow Jones Industrial Average

-0.34%

+8.80%

NASDAQ Composite

+0.03%

+6.62%

S&P 500 Index

-0.18%

+6.37%

Russell 2000

+0.28%

+6.64%

U.S. Aggregate Bond Index

+0.12%

+0.98%

MSCI All Country World

-1.24%

+3.91%

Source: Yahoo! Finance.  Data through 5-13-11

The markets as a whole were relatively flat last week.  In terms of economic data that was released, we found out that rising commodity prices have brought consumer prices to their highest level in 2 ½ years.  However, the core data reported that inflation remains under control (if you trust the reports).  In addition, the wholesale Producer Price Index (PPI) was impacted by a 3.6% rise in gasoline prices.  Retail sales rose again in April, though gas station activity (from higher gasoline prices) contributed to much of that increase; the more traditional merchants experienced more modest gains.  Claims for unemployment benefits dropped in the most recent weekly release, while the four-week moving average remained above the 400,000 level, which is a sign that the improving labor market still has a ways to go.

I continue to closely monitor the markets and economic data as commodities took another hit last week – oil and silver specifically.  It remains to be seen whether this is a temporary correction, or if the activity has been a result of speculative trading.  However, as long as my clients’ commodity holdings remain above their 200-day EMAs, I will continue to ride out the storm, as I feel commodities will come roaring back when everything is flushed out.  The fundamentals (i.e., supply/demand, inflation, etc.) for these holdings have not changed in the past 2 weeks.

Do you have an investment strategy that will keep emotion out of your decisions of when to buy or sell?  Call me to schedule a free review of your current investment portfolio – 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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