Weekly Newsletter 8/11/2014

Global markets were widely mixed this past week. Although the week was relatively quiet from an economic data release standpoint, it was surely full of geopolitical news points. The current investing environment continues to offer up confusing risk profiles as we look across markets. Consider that the current 10-year US Treasury Note yields approximately 2.4% versus the French 10-year that yields 1.47%. In other words it appears that investors view the French government as a better credit risk than the US. There are some that may argue that investors may be correct considering the US economic situation. The reality is the US controls its currency and has better economic potential than the French. Yet, in the current centrally planned economic environment it would appear the French offer a better credit risk. The same could be said of the Japanese, the Dutch, and the Spanish who can all borrow at the same or lower rates than the US.

On the economic data point front we did see mostly positive notes across the board. On the US front we saw improvements in factory orders, the service sector and mortgage applications. On foreign shores there were positives from China in terms of global trade and better leading economic indexes from Japan and Europe. As always, we continue to keep a close eye on economic data points, fundamentals and market trends to gain insight into market direction.

Global Market Index Performance

Global Market Perf 8-11-14

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 8-11-14

Chart 2 – US Aggregate Bond Index

$AKG 8-11-14

Global Data Points

Econ data points 8-11-14

 

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.