The market factors you should watch this week include; Greece, Europe, oil prices, retail sales and much more. We have an eventful week a head of us and last week wasn’t too dull either.
Last week’s market factors
Last week was a volatile week but to the up side as the DOW rose by 650 points. Even though the S&P 500 was up 3%, if you look at it since January, it has just been running in place.
Jobs, jobs, jobs
The Jobs Report showed good numbers last week and the last few months were revised up. The market ended down when this came out and many believe that is an indication of the market not thinking the Fed is going to be accommodating. We don’t necessarily agree and we see this as a buying opportunity. There are no guarantees but we don’t see interest rates going up any time soon.
Market factors this week: China, BDI and retail sales
Trade data was down 20% for China but this might have something to do with the upcoming Chinese New Year. The country basically shuts down during this time for the celebration.
The Baltic Drive Index (BDI) is at an all time low but this doesn’t necessarily mean the economy is slowing down. The economy still hasn’t absorbed the supply off of some large tanker ships that started about 5 years ago (More in the video).
We will be watching retail sales this week. As gas prices continue to stay low, it will be interesting to see where retail sales numbers will end up. Retail sales are two thirds of our economy and these numbers can give us a good indication about where the economy is heading.
US export data concerns
The US export data is starting to drop as it is now down about 1%. The cause for this is the strength of the US dollar. While many countries around the world are lowering their interest rates, the US continues to keep their’s stable which creates a stronger dollar. While this is good for the dollar, it’s making it harder for other countries to buy our goods.
We are researching US companies that are heavily dependent on exporting and evaluating their stock in relation to our portfolios. If this starts to have a reflection on earnings we will take appropriate action. On the other hand, it could become a buying opportunity for the long term.
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Please let us know if you have any questions or topics your would like us to cover.
Greg Powell, CIMA
Email Greg Powell here
Franklin Bradford, CMT
Senior Vice President
Email Franklin Bradford here
Ashley Page, JD, MBA
Senior Vice President
Email Ashley Page here
Bobby Norman, CFP®
Email Bobby Norman here
Trey Booth, CFA®
Email Trey Booth here
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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