Retirement Investors Market Update
Posted on Mon, Jun 13, 2011
Market Review – This Weeks Figures
While the markets are still in positive territory for the year, equity markets have been hit in the past week as concerns of a global growth slowdown and the June 30th end of the Fed's quantitative easing program caused investors to flee riskier assets. Add to the mix the fact that Washington can't seem to find consensus on how to handle the deficit and debt ceiling and the market prospects in the short run look challenging.
While sentiment is falling, it has not yet reached panic territory. A slew of economic data due out this week will help to clarify where we head from here. Both Bernanke and Geithner are set to speak this week, and inflation numbers will be released. But the market will most likely be focused on the weekly jobless claims numbers that are due out Thursday.
If we manage to get some decent numbers this week the market might find some support. If not, the already falling sentiment could likely reach a fever pitch on fears of a double dip. This being said, there are still a number of bullish managers with strong growth targets for the second half of the year regardless of this week’s figures.
While the slowdown fears are real, moving into the fixed income markets poses its own risks and inflationary pressures continue to present a long term investment challenge. Investing in too risk averse a manner into a strong inflationary environment can be damaging.
As always we continue to recommend a long term strategic investment strategy for retirement assets with minimal tactical movements along the way. Timing investor sentiment and short term market movements can be a fool’s errand. That being said, a review of your allocation might be in order given the current market conditions.
Due out this week-
Tuesday: retail sales, PPI, and business inventories, Bernanke talks
Wednesday: CPI, Empire State survey, industrial production,
Thursday: Initial jobless claims, housing starts, current account (q1), Philadelphia Fed survey
Friday: consumer sentiment, leading indicators
