Weekly Newsletter 03/30/2015

Global equity markets moved lower this past week on weak economic data and concerns of a slowing global economy. The significant economic data point of note from the US last week was the drop in durable goods orders last month as reported by the US Census Bureau. Durable goods orders dropped 1.4% from the previous month and durable goods orders ex-transportation dropped .4%. As you can see from the chart below durable goods orders are also referred to as capital expenditures (CAPEX), have rolled over off recent highs.

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Additionally, from the US, the Atlanta Fed publishes whether cal their GDPNow economic forecast that shows a ‘real time’ forecast of real GDP (real GDP means inflation adjusted). As you can see from the chart below, the forecast has been falling which again is an indicator of a slowing economy.

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As we have seen in the recent past bad economic news is not always bad news for the markets. Bad economic news has meant more economic stimulus and that has been a considerable tail wind to markets. As always, we continue to watch markets for signs of change in trends in markets, economies, and investor attitudes

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.

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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 Henry Becker

Henry L. Becker, Jr., CFP® has 15 years of experience in the financial services and investment advisory business. Henry is the Director of Research and Investment Strategy for Lighthouse Wealth Management. In addition, Henry is a world traveler (23 countries and counting), blogger, Hemingway reader, historian, Austrian economist, Roman history enthusiast, mountain biker, and skier.