While last week was a short week on the market there was not a shortage of useful data reported. US home prices rose 13.3% year over year in September, initial jobless claims fell by 10,000, durable goods orders were up 5.3% year over year, and consumer sentiment rose to 75.1 (from 73.2) only one month after a government shutdown. Resulting in a YTD S&P Growth rate of 29% through 11/29/2013.
The coming week should provide much clarity about global growth as Japan, China, and the EU will release their most recent PMI data as well as US and EU revisions for 3rd quarter GDP. We’ll be watching Friday especially closely as the monthly US Employment situation report will be released.
Internationally, Europe saw positive GDP data from both Germany and England, while France posted a negative GDP (treading close to a recession). As a whole EU unemployment fell to 12.1%, which as a whole is encouraging; especially since part of the reduction did come from Italy, which helped to contribute (heavily) to the EU’s recent recession. Japan saw inflation growth at 1.1% which is low, but meaningful for a country that has been marred with deflation. This at least shows signs of growing demand within their economy.
In closing I would like to wish everyone a happy holidays and I hope you got to enjoy a fattening Thanksgiving.
Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services. Broad diversification across several asset classes with a long term holding strategy is the best strategy in any market environment.
If you would like an in-depth analysis of your current positions and allocation, please feel free to call Jason Roque at 719-313-7536 to schedule an appointment.
Sources: mfs.com, oppenheimerfunds.com, investing.com, and morningstar.com
* Financial Action, Inc. is a Registered Investment Advisor.