Financial Advisor Portsmouth Ohio
Adams Wealth Management Group
Dwayne Adams CFP, RFC
Financial advisor
707 6th Street
Portsmouth, Ohio
Securities offered through LPL Financial member FINRA/SIPC
Weekly Market Update
Week of June 6, 2011
Week of June 6, 2011
U.S. Stocks fell for the fifth straight week after disappointing reports on jobs and manufacturing fueled concerns that economic growth is slowing. The S&P 500 slid 2.3% to 1,300, its lowest level since March, while the Dow fell 290.32 points, or 2.3%, to 12,151.[i] Should this be cause for alarm? This week, we would like to share what some industry insiders have recently said about the matter.
"Our view is that we're clearly seeing a slowdown, but you'd need a shock to the system to see things get much worse from here. There's little room for error, but there are reasons to expect growth, and we don't see a whole heck of a lot more downside."[ii]
- Andrew Goldberg, market strategist at J.P. Morgan Funds in New York
- Andrew Goldberg, market strategist at J.P. Morgan Funds in New York
"We don't see material downside from here. A five percent correction is appropriate for the slowdown we're experiencing, and over the intermediate term, our expectation is that we'll regain some momentum.”[iii]
- Jim McDonald, chief investment strategist at Northern Trust Global Investments
- Jim McDonald, chief investment strategist at Northern Trust Global Investments
“Investors should be looking for buying opportunities. The economy is not as bad as it looks right now.[iv]
- Byron Wien, vice chairman of Blackstone Advisory Partners
- Byron Wien, vice chairman of Blackstone Advisory Partners
From experience we know that the “experts” aren’t always right. In this case, we agree things are not as bad as some of the headlines make them out to be. The recovery is progressing slower than we would like, but it is still progressing. Until employers start persistently hiring again, the housing market gets straightened out, and Washington figures out what to do about the deficit, the recovery is going to ebb and flow.
The events that ultimately led up to the so-called Great Recession took years, even decades to unfold. In a similar way, the economy will take years to recover, not weeks or months. It is good to keep this fact in mind when we pick up the newspaper, turn on the television, or visit our favorite news website.
As always, we are vigilantly monitoring the situation and pledge to keep you informed about key issues. If you have any questions or concerns about how recent events could affect your financial future, please don’t hesitate to reach out to us. It is our pleasure to serve you!
ECONOMIC CALENDAR:Monday: Ben Bernanke Speaks
Tuesday: Consumer Credit
Wednesday: EIA Petroleum Status Report, Beige Book
Thursday: International Trade, Jobless Claims
Friday: Import and Export Prices, Treasury Budget
Data as of 06/03/2011
|
1-Week
|
YTD
|
1-Year
|
5-Year
|
10-Year
|
Standard & Poor's 500
|
-2.32
|
3.38
|
17.9
|
0.19
|
0.31
|
Dow
|
-2.33
|
4.96
|
18.5
|
1.61
|
1.06
|
NASDAQ
|
-2.29
|
3.01
|
18.6
|
4.63
|
2.71
|
MSCI EAFE
|
0.21
|
4.65
|
25.6
|
0.22
|
2.64
|
10-year Treasury Note (Yield Only)
|
3.06
|
NA
|
3.38
|
4.99
|
5.35
|
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
HEADLINES:
Greece has agreed to speed its sale of state-owned property and cut billions of dollars more from its budget to satisfy requirements for promised loans from the International Monetary Fund and other European countries.[v]
The president of Toyota Motors said on Saturday he expects the automaker to resume full production globally in November and its Japanese output is expected this month to recover to 90% of levels seen before the March earthquake.[vi]
Two bottles of the world’s oldest Champagne, which spent about 170 years at the bottom of the ocean, sold for 54,000 euros ($78,400) at an auction in Finland today.[vii]
The computer phishing attack that Google says originated in China was directed, somewhat indiscriminately, at an unknown number of White House staff officials, setting off the Federal Bureau of Investigation inquiry that began this week, according to several administration officials.[viii]
QUOTE OF THE WEEK:
“Intellectual growth should commence at birth and cease only at death.” – Albert Einstein
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Insert your broker/dealer disclosures here. i.e. Securities offered through LPL Financial member FINRA/SIPC.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
Insert your broker/dealer disclosures here. i.e. Securities offered through LPL Financial member FINRA/SIPC.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
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