Weekly Newsletter 7/28/2014

Global stocks were mixed this past week as global geopolitical stress twisted and turned investor attitudes. As is often the case, volumes in stocks continue to be light with bumps higher in volumes on down days. Market participation is still broad although light in volume which lends to buoyed broad indexes.

Global economic indicators were few in number but relatively important. Here in the US the annualized Consumer Price Index reading for June came in at 2.1% which is slightly above the target the Federal Reserve is looking for. On the homes front, existing home sales dropped slightly in June on a year over year basis compared to May and mortgage applications were up slightly for the reported week.

Overseas, the most notable reports were from Japan where the economy is still struggling mightily to reach a consistent forward momentum. For June, the Japanese economy saw imports move up significantly and exports drop. For an export driven economy these numbers are moving in the opposite direction than what is intended. Hence, the Japanese are now running a consistent trade deficit.

We continue to monitor global macro-economic and investing market data in an effort to seek opportunities and avoid pitfalls.

Global Market Index Performance

Global Market Perf 7-28-14

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 7-28-14

Chart 2 – US Aggregate Bond Index

$AKG 7-28-14

Global Data Points

Global Econ 7-28-14

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.