Every Monday we give you our insights on how the markets performed last week and what you, as an investor, need to be aware of this week.
The effect of dropping oil prices
October’s sales numbers came in last week surprisingly better than expected. Dropping oil prices continue with the average price per gallon at $2.92 in the United States. This adds up to 52 billion dollars in savings to consumers which is good news as we head into the holiday season.
Another S&P 500 all time high
The S&P 500 hit another all time high on Friday. This is due to overall positive economic news, better than expected corporate earnings, and belief that the Federal Reserve will keep interest rates down.
Recession worries in Japan and Europe
Dropping oil prices brings good news for Asian countries as they import most of their oil, so its cheaper for them. Unfortunately this has not helped out the Japanese and the Europeans. Europe is experiencing extremely slow economic recovery which recently posted only a 0.02% growth. France and Italy would have been in a recession if it had not been for government spending. Germany also barely missed a recession. Japan is experiencing slow growth and will probably have another round of a stimulus package.
Economic data to watch this week
The minutes from the Fed meeting last week will come out this week. We will also see reports on existing home sales and housing starts. We will get a look at US inflation through the CPI numbers. We are watching news from the Bank of Japan meeting in the middle of the week as well as data from Germany and the UK.
If you would like to talk with us about your market or investment concerns, feel free to email us here or call Franklin, Ashley or Bobby at (205) 989-3498.
Franklin Bradford, CMT
Senior Vice President
Ashley Page, JD, MBA
Senior Vice President
Bobby Norman, CFP®
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.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.