GBR Market Wrap: S&P 500 Déjà Vu?

Market Wrap Logo

In this Week’s Issue: October 7, 2011

Weekly Snapshot
• Apple co-founder Steve Jobs died at the age of 56 following a long battle with cancer
• ISM Manufacturing index was up 1% from August and better than expected
• U.S. Stocks finished lower on Friday but were up 2% for the week
• U.S. Nonfarm payroll employment edged up by 103,000 in September 2011
• U.S. unemployment rate held at 9.1% or 14.0 million unemployed persons
• The Federal Reserve’s balance sheet was $2.843 trillion on Oct. 5
• The Bank of England kept rates at 0.5%, plans an additional £75bn in quantitative easing
• The European Central Bank held interest rates steady at 1.5% in October
• Global uncertainty led the Reserve Bank of Australia to keep the cash rate on hold at 4.75%
• The Fitch agency downgraded its sovereign credit rating for Italy and Spain on Friday
• Rates on 30-year fixed mortgages fell to 3.94% this week, the lowest rate ever

Market Barometers

st-2011-10-07

fx-2011-10-07

Weekly Chart
Do you believe in coincidence or are you in the camp of believers in a higher order of all things perhaps unbeknownst to us? Chartists and technical traders were spooked by a rather strange form of déjà vu this week. Not directly apparent in the chart below is a very peculiar reoccurring closing price last seen in the midst of the financial crisis in 2008.

SPX-daily-10-7-11

The S&P 500 closed at 1099.23 on Monday October 3 of this week…

SPX-2011[4]

…the exact same level it closed on October 3 2008.

SPX-2008

Farewell To Steve Jobs
We would like to add our sentiments to Steve Jobs who passed away this week. Appreciation for his work and his legacy cannot truly be expressed in words so here’s an attempt to visually represent some of his achievements. This chart is from a previous blog post earlier this summer.

Steve-Jobs
Click on chart toview larger image

Steve Jobs was also known for creating a Reality Distortion Field (RDF) which as alleged to influence audience and coworkers to believe almost anything was possible. We may or may not believe in RDF. Apple’s stockholders however, were engulfed in RDF long enough to make it the most valuable company in the world at its peak. After his return to Apple in 1996, its market value grew from $1.7 billion in 1997 to $350 billion. Apple’s stock had an equally remarkable performance catapulting its share price from about $16 to over $420. Whatever happens to Apple now, his genius will truly be missed. Farewell Steve!

Apple stock

Recommended Video
In honor of Steve Jobs, we decided to reference a rare video interview with Steve Jobs and Bill Gates. 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

Neither the information nor any opinion contained in this communication constitutes a solicitation or offer by us to buy or to sell any securities, futures, options or other financial instruments or to provide any investment advice or service. Each decision by you to do any investment transactions and each decision whether a particular investment is appropriate or proper for you is an independent decision to be taken by you. In no event should the content of this communication be construed as an express or an implied promise, guarantee or implication by or from us that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. Please note that there is no requirement and no commitment to make any payments to FX Investment Strategies LLC in order to access our published information be it via email or via website publication. All information is publicly available without any required monetary consideration. Any payments or donations made by you are deemed to be voluntary and cannot be considered as payments for investment advice given to you.

Author of the article
Clemens Kownatzki, MBA
Clemens Kownatzki, MBA
More from The GBR Blog
A Blog on Blogging!

A Blog on Blogging!

Best Blog Practices Timely: The more relevant your topic to current events, the more hits you will receive. Valuable: Entries should promote knowledge, add insight, and provide valuable links to your readers. Concise: Every blog entry doesn’t need to be a 600-word essay. You can post photos, videos, links, PDFs, or anything that you think … Continued