Weekly Newsletter 11/17/2014

Global markets were modestly higher this past week. The most significant data releases were from foreign markets in the form of Gross Domestic Product (GDP) estimates for Q3 2014. Europe reported a preliminary Euro Area wide annualized GDP growth rate at .8%. The .8% growth rate for Europe is no change from the Q2 number. A .8% growth rate is essentially no growth and really negative growth when inflation is added to the mix. So, when coupled with the weak consumer price numbers released recently, the GDP numbers support the notion that the European Central Bank (ECB) is going to certainly make good on its promises of economic support.

Euro Area GDP 11-17

Overall, developed foreign markets are looking pretty dicey as continued weak economic data push foreign central banks further into experimental economic policies. In Japan, Abenomics (economic policies named after the country’s prime minister) is coming under scrutiny as the Bank of Japan continues to devalue the Yen, maintain low interest rates, and purchase assets. As has been the case for many years now, poor economic releases are not always received negatively as they reinforce central bank resolve to continue their economic support which investing markets have received kindly. As always, we continue to monitor global markets for opportunities and signs of stress.

Global Market Index Performance

Market Index 11-17

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 11-17

Chart 2 – US Aggregate Bond Index

$AKG 11-17

Global Data Points

Econ Data 11-17

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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.