Since we can’t rely on the game, here’s some data from last week that we should pay attention to:
Inflation continued to be benign. 2013 inflation rose at a 3 year low of 1.7%. The decreasing pace of inflation is a concern, but as of right now is not the primary focus as it does come in contrast to strong consumer sentiment and spending.
Retail Sales excluding auto sales rose by its largest percentage since February, increasing by .7%. Auto sales dragged the overall number down to .2%; however things look good in auto sales despite a weak December, revenue in the industry increased by 6.2% for the year.
Unemployment initial claims fell by 2,000, but more impressive was the JOLTs report (Job Opening and Labor Turnover Survey) showing that there are 4.01 million openings in the job market, more than 1/3rd the amount of unemployed in the U.S. This is encouraging since the amount of openings was along the lines of less than 1/6th of the unemployed population during the height of the recession.
Oil Independence, what? As recently as 2008 the U.S. was importing approximately 50% of the oil being consumed domestically. In 2013, imported oil accounted for approximately 25% of oil consumption. Independence on the oil front should lead to better control over its contribution to inflationary factors.
Internationally, Portugal was removed from Standard and Poor’s CreditWatch due to improved financial standing and its commitment to forward looking austerity moves. European industrial production increased by 3% during 2013. France is heading in the wrong direction, while the formerly struggling nations of Portugal, Greece, and Spain made great advances.
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.
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. Any and all third-party posts or responses to this blog do not reflect the views of the firm and have not been reviewed by the firm for completeness or accuracy.
Sources: mfs.com, oppenheimerfunds.com, investing.com, yahoo.com, and morningstar.com
* Financial Action, Inc. is a Registered Investment Advisor.