Thursday, September 30, 2010

WEEKLY ECONOMIC UPDATE - September 27, 2010

EXISTING HOME SALES IMPROVE
The National Association of Realtors reported that existing home sales rose 7.6% in August, a rebound from July’s record low. Separately, the Commerce Department said new home sales were flat in August (and 28.9% below year-ago levels). The inventory of unsold new homes decreased 1.4% last month to 206,000 – the smallest number since August 1968.1

MARKET SEES UPSIDE IN DURABLE GOODS DATA
Overall durable goods orders declined 1.3% in August, but that was better than the 1.4% drop forecast by economists polled by Briefing.com. Minus transportation orders, durable goods orders were up 2.0% last month, far better than the 0.5% rise analysts expected. That news helped fuel a 198-point DJIA rally on Friday.2

ECONOMISTS SAY RECESSION DONE; BUFFETT SAYS NO
The National Bureau of Economic Research now says the “Great Recession” ended in June 2009. But Warren Buffett disagrees. Last week, the “oracle of Omaha” told CNBC: “I think we’re in a recession until real per capita GDP gets back up to where it was before … we’re not gonna be out of it for a while, but we will get out of it.”3,4

LEADING INDICATORS ADVANCE 0.3% IN AUGUST
Last month, the Conference Board’s Leading Economic Indicators Index had its best increase since May. This is the second monthly advance in a row for the LEI.5

GOLD TOPS $1,300 FRIDAY
The Federal Reserve hinted at more quantitative easing last week, which helped gold futures. Gold rose above $1,300 in intraday trading Friday on the COMEX and settled at $1,298.10 per ounce. Silver ended the week at another 30-year peak: $21.40 per ounce after a 2.8% weekly advance.6

DOW PUSHES TOWARD 11,000
The DJIA advanced for a fourth straight week, closing Friday at 10,860.26. On the week, it advanced a healthy 2.38%. The S&P 500? Up +2.05% last week to 1,148.64 at Friday’s close. The NASDAQ? Up +2.83% last week to finish at 2,381.22 Friday.7

COMING NEXT WEEK: Tuesday, a new Case-Shiller home prices report & the Conference Board's Consumer Confidence Index; Thursday, the third 2Q GDP estimate & initial claims; Friday, August consumer spending, the University of Michigan’s final September consumer sentiment survey, the September ISM manufacturing index & new auto sales and construction spending figures.

% CHANGE
Y-T-D
1-YR CHG
5-YR AVG
10-YR AVG
DJIA
+4.14
+11.88
+0.85
+0.05
NASDAQ
+4.94
+12.98
+2.50
-3.64
S&P 500
+3.01
+9.31
-1.10
-2.02
REAL YIELD
9/24 RATE
1 YR AGO
5 YRS AGO
10 YRS AGO
10 YR TIPS
0.81%
1.64%
1.74%
4.03%

Source: cnbc.com, bigcharts.com, ustreas.gov, bls.gov - 9/24/107,8,9,10
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.


WEEKLY QUOTE
“Successful people ask better questions, and as a result, they get better answers.”
– Anthony Robbins

WEEKLY TIP
If you’re trying to save money or track your spending, consider using cash. Cash is real. You can see it, and you know when you’re out of it. Money becomes more abstract when you use a credit or debit card, leaving you more open to financial choices you may later regret.

WEEKLY RIDDLE
I have no heart or mind, but I do have two legs. Yet they only touch the ground when I am not carrying things around. What am I?

Last week’s riddle:
It is passed from hand to hand and pocket to pocket, yet whoever takes it doesn’t know it. Whoever knows it doesn’t want it. And whoever makes it makes sure never to mention it. What is it?

Last week’s answer:
Counterfeit money.


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If you would like us to add them to our distribution list, please reply with their address.
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Citations.
7 - cnbc.com/id/39348037 [9/24/10]


Regards,
C.W. Copeland
"Your Personal CFO"
C.W. Copeland & Associates
Lifestyle Management Advisors
3401 Norman Berry Drive

Suite 253
East Point, GA 30344
404.567.3275 (direct)
404.601.9534 (fax)

www.PhDinMoney.com

Securities offered through Resource Horizons Group, L.L.C.
Member FINRA, SIPC
Advisory services offered through Resource Horizons Investment Advisory
1350 Church St. Ext. Third Floor
Marietta, GA 30060
Office 770 319-1970


WEEKLY ECONOMIC UPDATE - September 20, 2010

CPI, PPI RISE MODESTLY
According to the Labor Department, the Consumer Price Index rose 0.3% in August while the Producer Price Index advanced 0.4%. You can chalk up the increase to energy prices, especially summer gasoline prices: consumer energy costs rose 2.3% last month, and energy costs for producers went up 2.2%. Yet core CPI was flat in August, while core PPI increased just 0.1%. Over the last 12 months of data, core CPI and core PPI have respectively risen 0.9% and 1.3%.1,2

CONSUMER SENTIMENT SINKS TO 13-MONTH LOW
The final Reuters/University of Michiganconsumer sentiment survey for September read 66.6, the lowest figure since August 2009 and way below the 70.0 forecast by economists polled by MarketWatch. The drop likely reflects consumer reaction to stock market and unemployment data earlier in the month.3

SMALL BUSINESS JOBS BILL CLEARS SENATE
Last Wednesday, the Senate voted 61-38 in favor of a measure that would create a $30 billion fund to encourage small business loans at community banks. The legislation would also offer business owners an immediate expensing deduction and give the self-employed a chance to deduct health care costs from self-employment tax on their 2010 federal returns. The Small Business Jobs Act is widely expected to pass in the House and become law.4,5

GOLD & SILVER RALLY TO IMPRESSIVE HEIGHTS
Gold settled at an all-time record close of $1,277.50 per ounce on the COMEX Friday. The precious metal gained 2.5% last week. Silver futures settled at a peak unseen since 1980 on Friday - $20.82 per ounce.6

SEPTEMBER DEFIES EXPECTATIONS
Historically, September has been lousy for stocks – but not in the last few years. So keep your fingers crossed: the Dow has advanced 4.5% over the past three weeks. The three major U.S.indices logged nice weekly gains from September 13-17, as follows: DJIA, +1.39% to 10,607.85; S&P 500, +1.45% to 1,125.59; NASDAQ, +3.26% to 2,315.61.7

COMING NEXT WEEK: Tuesday, a Fed rate decision + August housing starts & building permits. Thursday, the latest initial claims numbers + August existing home sales & the Conference Board’s leading indicators index. Friday, August new home sales & durable goods orders.

% CHANGE
Y-T-D
1-YR CHG
5-YR AVG
10-YR AVG
DJIA
+1.72
+8.42
-0.0006
-0.19
NASDAQ
+2.05
+8.88
+1.44
-3.79
S&P 500
+0.94
+5.64
-1.81
-2.21
REAL YIELD
9/17 RATE
1 YR AGO
5 YRS AGO
10 YRS AGO
10 YR TIPS
1.00%
1.62%
1.73%
4.03%

Source: cnbc.com, bigcharts.com, ustreas.gov, bls.gov - 9/17/107,8,9,10
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.



WEEKLY QUOTE
“It is good to have an end to journey toward; but it is the journey that matters, in the end.”
– Ursula Le Guin

WEEKLY TIP
Track your expenses. You may be surprised how much you learn about your financial habits, and you might spot ways to save that you hadn’t thought of.

WEEKLY RIDDLE
It is passed from hand to hand and pocket to pocket, yet whoever takes it doesn’t know it. Whoever knows it doesn’t want it. And whoever makes it makes sure never to mention it. What is it?

Last week’s riddle:
Where does today come before yesterday?

Last week’s answer:
In the dictionary.


Please feel free to forward this article to family, friends or colleagues.
If you would like us to add them to our distribution list, please reply with their address.
We will contact them first and request their permission to add them to our list.


Citations.
7 - cnbc.com/id/39236921 [9/17/10]

Regards,
C.W. Copeland
"Your Personal CFO"
C.W. Copeland & Associates
Lifestyle Management Advisors
3401 Norman Berry Drive

Suite 253
East Point, GA 30344
404.567.3275 (direct)
404.601.9534 (fax)

www.PhDinMoney.com

Securities offered through Resource Horizons Group, L.L.C.
Member FINRA, SIPC
Advisory services offered through Resource Horizons Investment Advisory
1350 Church St. Ext. Third Floor
Marietta, GA 30060
Office 770 319-1970





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