Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Michael D. Ruccio, AAMS Senior Vice President 25 Hanover Road Florham Park, NJ 07932-1407 (p) (866) 248-0096 (f) (973) 966-0309 [email protected] www.rbcwm-usa.com
Market Week: September 12, 2011 The Markets European battleground: Equities worldwide suffered from concerns that the European Union's willingness to assist with various members' financial problems might be wearing thin. Since the previous week's electoral losses for Germany's ruling party in 6 of the country's 16 states, which could affect future assistance to other eurozone countries, the euro has lost more than 4% versus the dollar. The turmoil helped drop the 10-year Treasury yield to a new low below 2% for the first time in decades as investors sought refuge from the sturm und drang.
Last Week's Headlines European unity began to show signs of wear and tear as a German member of the European Central Bank's executive board resigned, raising questions about conflicts over renewed ECB bond-buying and the potential impact on banks. Meanwhile, a widely watched German court ruling said that the country's participation in existing eurozone bailouts was legal, but that parliamentary approval would be needed for future efforts. Officials of Switzerland's central bank said it will not allow the Swiss franc, which has been strengthened in recent months by investors seeking refuge from troubled markets, to trade below 1.20 against the euro; the move is designed to help the Swiss economy remain competitive. Meanwhile, the Italian Senate approved an austerity package designed to reduce the country's deficit. Calling persistent unemployment a national crisis, President Obama went to Congress to propose expanded Social Security payroll tax cuts, tax breaks for companies hiring new workers, and new public construction projects. Obama said the jobs plan, estimated to cost around $447 billion, would be paid for by deficit-reduction measures to be outlined next week. Federal Reserve Chairman Ben Bernanke left those hoping for a QE3 disappointed as he once again failed to specify what tools the Fed might use to assist the economy. The Institute for Supply Management's index of the U.S. services sector was up slightly in August, rising to 53.3%. It was the 21st straight month of growth. The Commerce Department said the U.S. trade deficit narrowed more than expected in July, falling to $44.8 billion. Higher exports of industrial materials, capital goods, and auto-related products helped fuel the 13% decline.
Eye on the Week Ahead Europe is likely to continue to attract attention in the wake of last Friday's deadline for bondholders to agree (or not) to accept losses required by Greece's most recent financial aid package. Investors also will be gauging the potential impact on banks as Greece continues to struggle to avoid default. Domestically, new manufacturing, retail sales, and inflation data could shed light on the U.S. economy.
Key dates and data releases: wholesale inflation, retail sales (9/14); consumer inflation, industrial production, Philadelphia Fed/Empire State manufacturing surveys, weekly new jobless claims (9/15); options expiration (9/16).
Comments
http://news.goldseek.com/InternationalForecaster/1315808340.php
http://www.onwallstreet.com/news/california-plans-to-offer-mini-bonds-2675030-1.html?ET=onwallstreet:e3884:2131761a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=OWS_Daily__091211
also
rbc wealth management weekly commentary [fixed income perspectives]
RBC Wealth Management
Michael D. Ruccio, AAMS
Senior Vice President
25 Hanover Road
Florham Park, NJ 07932-1407
(p) (866) 248-0096
(f) (973) 966-0309
[email protected]
www.rbcwm-usa.com
Market Week: September 12, 2011
The Markets
European battleground: Equities worldwide suffered from concerns that the European Union's willingness to assist with various members' financial problems might be wearing thin. Since the previous week's electoral losses for Germany's ruling party in 6 of the country's 16 states, which could affect future assistance to other eurozone countries, the euro has lost more than 4% versus the dollar. The turmoil helped drop the 10-year Treasury yield to a new low below 2% for the first time in decades as investors sought refuge from the sturm und drang.
Market/Index 2010 Close Prior Week As of 9/9 Week Change YTD Change
DJIA 11577.51 11240.26 10992.13 -2.21% -5.06%
NASDAQ 2652.87 2480.33 2467.99 -.50% -6.97%
S&P 500 1257.64 1173.97 1154.23 -1.68% -8.22%
Russell 2000 783.65 683.36 673.96 -1.38% -14.00%
Global Dow 2087.44 1858.61 1784.76 -3.97% -14.50%
Fed. Funds .25% .25% .25% 0 bps 0 bps
10-year Treasuries 3.30% 2.02% 1.93% -9 bps -137 bps
Last Week's Headlines
European unity began to show signs of wear and tear as a German member of the European Central Bank's executive board resigned, raising questions about conflicts over renewed ECB bond-buying and the potential impact on banks. Meanwhile, a widely watched German court ruling said that the country's participation in existing eurozone bailouts was legal, but that parliamentary approval would be needed for future efforts.
Officials of Switzerland's central bank said it will not allow the Swiss franc, which has been strengthened in recent months by investors seeking refuge from troubled markets, to trade below 1.20 against the euro; the move is designed to help the Swiss economy remain competitive. Meanwhile, the Italian Senate approved an austerity package designed to reduce the country's deficit.
Calling persistent unemployment a national crisis, President Obama went to Congress to propose expanded Social Security payroll tax cuts, tax breaks for companies hiring new workers, and new public construction projects. Obama said the jobs plan, estimated to cost around $447 billion, would be paid for by deficit-reduction measures to be outlined next week.
Federal Reserve Chairman Ben Bernanke left those hoping for a QE3 disappointed as he once again failed to specify what tools the Fed might use to assist the economy.
The Institute for Supply Management's index of the U.S. services sector was up slightly in August, rising to 53.3%. It was the 21st straight month of growth.
The Commerce Department said the U.S. trade deficit narrowed more than expected in July, falling to $44.8 billion. Higher exports of industrial materials, capital goods, and auto-related products helped fuel the 13% decline.
Eye on the Week Ahead
Europe is likely to continue to attract attention in the wake of last Friday's deadline for bondholders to agree (or not) to accept losses required by Greece's most recent financial aid package. Investors also will be gauging the potential impact on banks as Greece continues to struggle to avoid default. Domestically, new manufacturing, retail sales, and inflation data could shed light on the U.S. economy.
Key dates and data releases: wholesale inflation, retail sales (9/14); consumer inflation, industrial production, Philadelphia Fed/Empire State manufacturing surveys, weekly new jobless claims (9/15); options expiration (9/16).
http://www.123jump.com/mutual-fund/Schooner Fund/729/yes
small cap hit the wall
http://online.barrons.com/article/SB50001424052702304605504576554892868512106.html?mod=BOL_funds_recent
this guy got 9 lives
http://online.wsj.com/article/SB10001424053111904103404576560913892680574.html
long term bulls on bullions
http://online.barrons.com/article/SB50001424052702304605504576554852812544670.html?mod=BOL_funds_recent#articleTabs_panel_article=1
using reits for current yields
http://www.advisorone.com/2011/09/10/using-reits-for-current-yields-portfolio-fix
what to look for in a dividend MF
http://www.marketwatch.com/story/what-to-look-for-in-a-dividend-mutual-fund-2011-09-11
wise indexer?
http://seekingalpha.com/article/292887-become-a-wise-index-investor
silver gets ready for breakout
http://business.financialpost.com/2011/09/12/silver-getting-ready-for-a-breakout/
ot - muni bond sales to rise this yr
http://www.bloomberg.com/news/2011-09-09/municipal-bond-sales-to-rise-on-low-rate-refinancing-rbc-says.html
country etf outlook portfolio diversification
http://www.financial-planning.com/news/country-etfs-outlook-portfolio-diversification-2675041-1.html
active vs passive
http://news.morningstar.com/articlenet/article.aspx?id=394007
invest abroad and avoid LT bonds
http://www.newjerseynewsroom.com/economy/cpa-advice-invest-abroad-and-avoid-long-term-bonds
http://online.wsj.com/article/BT-CO-20110912-712749.html
http://www.google.com/#hl=en&sugexp=bvec&cp=62&gs_id=3&xhr=t&q=California+Ramps+Up+Borrowing+As+Muni+Bond+Yields+Keep+Falling&qe=Q2FsaWZvcm5pYSBSYW1wcyBVcCBCb3Jyb3dpbmcgQXMgTXVuaSBCb25kIFlpZWxkcyBLZWVwIEZhbGxpbmc&qesig=si661-YLhjirN58hzTrCTA&pkc=AFgZ2tmeYgctSWlfYfZ-07Nm310phqRH0wJnoVGuX_ixZ92kxNUDpade8VP1N6l6xaoR7P0p-IfoeZFfds7dvK0vvb1rvnrYug&pf=p&sclient=psy-ab&site=&source=hp&pbx=1&oq=California+Ramps+Up+Borrowing+As+Muni+Bond+Yields+Keep+Falling&aq=f&aqi=&aql=&gs_sm=&gs_upl=&bav=on.2,or.r_gc.r_pw.&fp=1cd3f9be41483c89&biw=1366&bih=521
ot - mauldin 2008 all over again?
http://www.businessinsider.com/prepare-now-there-is-so-much-that-could-push-us-into-another-2008-crisis-2011-9