GBR Market Wrap: U.S. Stocks End Gloomy Third Quarter on a Weak Note

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In this Week’s Issue: September 30, 2011

Weekly Snapshot
• U.S. Stocks end gloomy third quarter on a weak note, down 7.18% in Q3
• Freddie Mac reported 30-year fixed mortgage rates at record low 4.01%
• Euro area annual inflation is expected to be 3.0% in September 2011
• The Euro area unemployment rate was 10.0% in August 2011, unchanged from July
• China’s manufacturing improved slightly in September, for a second month of gains
• Bank of America will charge a new $5 monthly fee for the use of a debit card
• The German parliament approved increasing the size and flexibility of the ESFS
• U.S. real GDP increased at an annual rate of 1.3% in the second quarter of 2011
• Durable goods in August decreased $0.2 billion or 0.1 percent to $201.8 billion,
• U.S. Consumer Confidence Index at 45.4 (1985=100), up slightly from 45.2 in August
• U.S. home prices rose for a fourth consecutive month, up 0.9% in July over June
• U.S. new home sales in August down 2.3% from July, but up 6.1% from a year ago
• CME Group hiked margins again, on gold by 21%, silver by 16% and copper by 18%

Market Barometers

st-2011-09-30fx-2011-0930

Weekly Chart

It’s the end of the quarter and the end of a rather tumultuous summer for investors. September is usually the weakest month of the year, but this one was particularly unappealing at -7.18% for the month. Adding the –5.68% in August and –2.15% in July, the S&P 500 really took a chunk out of investors’ pockets.  The S&P 500 has been settling in clear bear market territory again but the index is still 67.2% above the March 2009 low.

SPX-Performance

Not all that encouraging one could argue.  Then again, other markets felt the pinch as well.  In fact, the U.S. markets fared reasonably well compared with other markets in Europe and Asia.  Might the U.S. be in a relatively better position after all?

world-indexes-since-03-09-09

Recommended Read
Please consider The Price of Gold in the Year 2160.  This article puts a lighter twist on the gold mania that captured investors’ nerves recently.  Enjoy!

Good luck and good investing!


Clemens Kownatzki, MBA is an adjunct professor of financial risk management at the Graziadio School of Business and Management, as well as the founder and CEO of FX Investment Strategies, a Registered Investment Advisor. In addition to running his investment advisory firm, he is a contributing author at SeekingAlpha.com and BusinessInsider.com. He also authored the book, Money Music 101, available on Amazon and Kindle, in addition to publishing the popular investment blog www.fxinvestmentstrategies.com along with a weekly newsletter.Disclaimer

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Author of the article
Clemens Kownatzki, MBA
Clemens Kownatzki, MBA
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