Surprisingly, we saw a positive week in the markets, though there was little volume. The returns were surprising because of all the continued bad news coming out of Europe. Belgium’s biggest bank, Dexia, is going to be bailed out and partly nationalized by the French and Belgium governments, Italy and Spain were both downgraded, and a large number of British banks were downgraded.
Earnings season kicks-off this week, which should give investors a glimpse into the “real” state of Corporate America. Many analysts are predicting that businesses have been doing just fine even though the markets/economy said differently last quarter. It’s believed that businesses are waiting for signs of stability (aren’t we all?) before hiring more and investing their cash in operations. In addition to earnings reports this week, the Fed will be releasing the minutes from their last meeting, and a retail sales report at the end of the week should provide guidance as to what investors might be able to expect heading into the holiday season. Oh yeah, and there’s Europe – your guess is as good as mine as to what we will see/hear from overseas this week. Hang on tight!
Do you have an investment strategy that seeks to protect your portfolio against volatile economic conditions? 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.