Last week in the markets
Last week was a rough week in the markets worldwide. The GDP declined and came in below expectations. Also, corporate profits fell. Most analysts feel like this is because of the higher dollar, which is something we have been talking about for weeks. However, there was some good news, as consumer confidence and new home sales both grew.
This week in the markets
We have a good bit of data coming out this week that we will be watching. Personal income has already come out this morning, and Wednesday we will see ISM Manufacturing numbers. Thursday we will see jobless claims, international trade data, and Janet Yellen’s speech. The big news on Friday will be the employment situation. Additional data we will continue to monitor as it comes out this week will be the Case–Shiller Home Price Index and consumer confidence reports.
Personal income data and an impact in the markets
Disposable income is inching up a little which is good. We are also seeing a little wage growth and the employment situation getting better. Interestingly, the savings rate has now risen to about 5.5 %, which is around 1.5% higher than we saw last year after the first quarter. Additionally this year we are seeing tax refund checks trending higher. For most people, this is their largest singular payment. We think that higher tax refunds this year, combined with the increased saving rate, can be very impactful and help with a pickup in the markets. As a reminder, the majority of the markets are consumers so people being confident and spending can be very powerful.
In the beginning of this year Greece was front page news. Since then they were able to get a holdover from their creditors in order to put together a plan. They are now supposed to present that plan this week, so we could see Greece move back to more of a front page news story again. The concern is that if Greece can’t meet what their creditors need, they may exit the Euro. We don’t expect this to happen, however, it could bring some volatility back in the markets in terms of perception.
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fi-Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. fi-Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.
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