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 http://www.chladekwealth.com.