Weekly Newsletter 7/14/2014

Global stocks dropped across the board last week spurred on by news that Portugal’s largest bank is in ‘serious financial condition’ according to the county’s central bank. The news of the bank’s troubles sent already shaky global stocks lower and investors seeking safe havens such as precious metals and treasuries. The trouble in Portugal has brought attention to the fact that the European banking system is still very weak and prone to shocks.

For the week, global economic data point releases were light. The most significant release in the United States was from the National Federation of Independent Businesses (NFIB). NFIB released the results of its monthly survey that produces the NFIB Business Optimism Index. The index for June came in slightly lower at 95 versus May’s reading of 96.6. Although slightly lower, a number of the components came in largely lower than expected. Additionally, in the US the Mortgage Banker’s Association’s weekly mortgage applications number bumped up slightly.

Internationally, the only significant reports came from China via import/export numbers which both showed improvement. The numbers from China are meaningful as China’s consumption and production are of pinnacle importance to the global economy. As always, we continue to watch global economic data in order to stay on top of market moving events and news.

Global Market Index Performance

Global Market Perf 7-14-14

Getting Technical with Market Charts

In this section we present charts of the S&P 500 Stock Index and the US Bond Market Index relative to their 50 day (blue line) and 200 day (red line) moving averages.  In addition, we have added the blue shaded area which represents the recent trading channel. The 50 and 200 day moving averages are widely followed market trend indicators that provide a general picture of the health of the broad indexes.

Chart 1 – S&P 500 Index

$SPX 7-14-14

Chart 2 – US Aggregate Bond Index

$AKG 7-14-14

Global Data Points

Global Econ 7-14-14

Securities are offered through First Allied Securities, Inc. (FASI), a registered Broker Dealer, Member FINRA/SIPC. Advisory Services offered through Lighthouse Financial Advisors, Inc., a Registered Investment Advisor dba Lighthouse Wealth Management (LWM). Lighthouse Financial Advisors, Inc. is not a subsidiary or control affiliate of FASI.

Disclaimer – Information contained herein is taken from sources believed to be reliable, but cannot be guaranteed as to its accuracy. Market opinions contained herein are intended as general observations and are not intended as specific investment advice. The Standard and Poors 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. The Barclays Aggregate Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment-grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. Contact your investment professional to discuss suitability for your particular circumstances. This article does not constitute an offer of sales of any securities. Securities trading is speculative and involves the potential loss of investment. Past results are not necessarily indicative of future results. Lighthouse Financial Advisors, Inc., dba Lighthouse Wealth Management, is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered, excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability.

About Katy Chase

Katy Chase, MBA, contributes her own perspective to the team. With previous training in Marketing and French, her perspective offers a mixture of macroeconomic, cultural, and client-focused experiences. In addition, Katy is a baker (with a specialty in chocolate), athlete, perpetual student/learner, volunteer, blogger, Nittany Lion, daughter, grand-daughter, sister, and wife.