Weekly Newsletter 7/21/2014

Global stocks registered a positive week in the face of increasing geopolitical tensions. A number of institutional investors used the past week as an opportunity to buy dips in the market. Oftentimes market dips as a result of geopolitical tensions are used as buying opportunities when few opportunities would exist otherwise. The current uptrend in US stocks has resulted in a market that has not seen a 10% drop in almost two years. Therefore, investors are looking for any dips for entry points. While we see the value in such, we also understand that the location and intensity of the global tensions are worth a measure of caution.

Turning to global economic data, the week was relatively light and mixed. Here in the US the regional Federal Reserve manufacturing indexes in Philadelphia and New York came in positive but the reported outlooks for the future slipped. Also, retail sales in the US came in lower than expected and showed little improvement over the previous month.

Economic reports from overseas were light. The most notable reports were the economic sentiment pick up in Europe as reported by the ZEW survey and a stabilization of Chinese GDP for the 2nd quarter of 2014. China has been a worry in the corner of many investors minds and seeing a stable GDP may put some relief in worried minds. We will continue to monitor the global marketplace for opportunities and warning signs and take actions as necessary.

Global Market Index Performance

Global Market Perf 7-21-14

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 7-21-14

Chart 2 – US Aggregate Bond Index

$AKG 7-21-14

Global Data Points

Global Econ 7-21-14

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.