Weekly Newsletter 9/3/2014

Other than Japan, global markets moved up this past week on mostly positive economic data releases from the US in particular.  While geopolitical tensions persist, investors appear to be more tuned into the central banks reassurances of continued support for economies and low interest rates.

This past week here in the US, the second preliminary report for second quarter US GDP stayed strong at 4.2% annualized.  In addition, there were positive reports of both consumer confidence from the Conference Board and consumer sentiment from Reuters / University of Michigan.

More importantly, economic data out of Europe continues to erode and now we are beginning to see the bad news is good news phenomenon in Europe.  Recall that not too long ago in the US, as poor economic data was released, the US stock market as a whole moved higher on the suspicion that more stimulus was coming.  Now, we are seeing the same in Europe as economic growth is still subpar and moving lower.

As always, we continue to monitor global economics and look for hints of impacts on investing markets.

Global Market Index Performance

Global Market Perf 9-2-14

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 9-2-14

Chart 2 – US Aggregate Bond Index

$AKG 9-2-14

Global Data Points

Econ Data Points 9-2-14

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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.