– S&P 500 – 31.87% YTD – Strongest annual performance since 1997
– U.S. Aggregate Bond – (2.11%) Sharp contrast to the performance of the last several years.
– 10 year U.S. Treasury rate – 3.02% vs. 1.74% a year earlier, more likely to come as Tapering begins.
With much to celebrate on the stock market the bond markets had a year that was marred with attempting to tread water. These numbers show why a well blended portfolio is so crucial to a client’s success. Now on to last week…
There was plenty of positive economic data released last week for the markets to digest, however the holiday in the middle of the week, trading was light. Apparently people were too busy drinking eggnog to care (good for them). So what was sooo positive this past week? Here’s the breakdown:
– US durable goods orders (a good indicator of future large item consumption) rose by its highest margin since January, 3.5% in November.
– US consumer spending rose .5% in November. More specifically Holiday sales rose 2.3% in comparison to 2012. Per MasterCard Advisors’ SpendingPulse.
– Consumer Sentiment rose 82.5 in December which paints a picture of hope for the consumer going into the 1st quarter of next year.
– US initial jobless claims fall by 42,000, the first decline in 4 weeks. The holiday season always lends itself to volatility in the jobs reports as seasonal help is in flux.
Internationally, China anticipates a 2013 GDP of 7.6% (after 7.7% for 2012) and Japan saw inflation rise at a rate of 1.2% year over year. While in the US that would appear as a benign amount (as discussed last week), in Japan, 1.2% inflation is the highest level they have reached since 2008 and is a great sign for a nation that has been battling deflation for much of the last 5 years.
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.