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.
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.
“It is good to have an end to journey toward; but it is the journey that matters, in the end.” – Ursula Le Guin
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.
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.
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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
A degreed engineer (in a past life) business owner, business development coach, project manger, and organizational strategist with a strong background in surveillance, ES&H redesign, project management, process engineering, organizational operations, management, business law, and ISO internal auditing. Am an organzing member of NSBE-AE, Organizing Board member Greenwood Festival Chorale, former Omega Psi Phi Graduate Chapter President (Baselius) a former Shelter BOD Chair, a former Regional Chair, former Lander Board of Visitors Member, former Chamber BOD member, as well as many other organizational leadership positions. Owner Spearman Enterprises and Managing Partner Top Flight LLC.