Economic data during the week ending 10/11 was weaker and the lack of government reporting on key economic data (thank you government shutdown) has made it harder for investors to navigate the waters between economic data and headlines. Jobless Claims jumped last week, believed to be due, in large part, to the government shutdown (25% of the increase) and lagging reporting out of California (50% of the increase). As expected the political turmoil in our country has begun to impact consumer confidence, down 3% from the prior month. Retail sales were down accordingly, missing expectations for September.
With October 17th looming, it is still believed that a deal will be reached on the debt ceiling allowing, even if for a brief period, for our government to pay its bills on previously agreed upon spending. Both sides will see concessions; however the concessions could have long ranging (positive) impacts to our economic growth.
Internationally, UK housing price increases gained more month over month than it has in 4 years. Japan’s current account surpluses were less than anticipated. China established a deal with the European Central Bank (ECB) that will further promote the use of the Yuan in global financial transactions. German factory orders fell as a result of weak international demand. Canadian unemployment reached a near 5 year low at 6.9%
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, and morningstar.com
* Financial Action, Inc. is a Registered Investment Advisor.