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Are You Tired of Hearing About Europe Yet?
Weekly Update - November 28, 2011
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In This Issue
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It was another brutal week for stocks as fears related to Europe's debt situation dominated headlines. According to CNBC, the S&P 500 logged its worst Thanksgiving week since 1932. [1] Ouch! For the week, the S&P 500 fell 4.7%, giving back almost two-thirds of its October gains. [2]
Another factor that contributed to the poor performance is that trading volume was exceptionally light for the week as investors pulled away from their computers to enjoy some holiday relaxation. The day after Thanksgiving is typically one of the lightest volume days of the year, and true to form, only 3 billion shares (less than half the daily average) changed hands on major exchanges as the stock market closed early at 1 pm. [3]
Even though the U.S. economic picture keeps improving, investors continue looking to Europe for signals. And unfortunately, the signals coming out of Europe are a mixed bag at best. Despite hopes that new leadership can pull the region out of crisis, more countries continue to struggle. Hungary's credit rating was downgraded to junk status by Moody's last week. [4] Belgium, which has struggled to implement spending cuts after 18 months without a government, was downgraded on Friday to AA from AA+ by Standard & Poor's. [5] Italy paid a record 6.5% to borrow money over six months on Friday, and its longer-term funding costs soared far above levels seen as sustainable for public finances. High debt yields from major economies such as Spain, France, and Germany suggest investing in the region is perceived as being more risky. And last week's poor auction of German bonds raised concerns that the debt crisis is spreading to Europe's core. [6] This rash of negative news is really disturbing investors.
To quote Brian Lazorishak, portfolio manager at Chase Investment Counsel "This market is going to continue to be driven by what's happening in Europe. If things seem to be falling apart, nothing else will matter. If it looks like there's a way out - a light at the end of the tunnel in Europe - that could spark a decent rally from where we are now." [7]
ECONOMIC CALENDAR:
Monday - New Home Sales
Tuesday - S&P Case Shiller, HPI, Consumer Confidence
Wednesday - ADP Employment Report, Productivity and Costs, Chicago PMI, Pending Home Sales Index, EIA Petroleum Status Report, Beige Book
Thursday - Motor Vehicle Sales, Jobless Claims, ISM Manufacturing Index, Construction Spending
Friday - Monster Employment Index, Employment Situation Report
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Performance 
 Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized. Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not available. |
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Headlines
Black Friday sales increased 6.6% to the largest amount ever as U.S. consumers shrugged off 9 percent unemployment and went shopping. Consumers spent $11.4 billion, ShopperTrak said in a statement yesterday. Foot traffic rose 5.1% on Black Friday, according to the Chicago-based research firm. [8]
Did you skip the lines on Black Friday? There's still Cyber Monday -- and analysts are expecting an abundance of deals to bring in record online sales this year. Andrew Lipsman, an industry analyst at data tracking firm ComScore, said sales for the one-day shopping event are projected to hit a record $1.2 billion this year. [9]
Last week, Congress's special 12-member deficit-cutting committee failed to agree on measures to address U.S.'s fiscal woes. It marked the third year in a row that taxpayers headed into December with major tax-code issues unaddressed. Lawmakers have a lengthy to-do list. The 2% Social Security payroll-tax cut for employees expires at the end of 2011. So do a host of other provisions, including a fix to keep the alternative minimum tax from expanding to millions more taxpayers in 2012, and an extension of the popular IRA charitable contribution for people older than 70½. [10]
Oil prices rose towards $108 on Thursday, helped by bigger-than-expected stock draws in the United States and tensions around Iran. [11]
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"We can do anything we want if we stick to it long enough." - Helen Keller
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Gingered Lemon Broccoli Salad 
3 tablespoons light mayonnaise or salad dressing
2 tablespoons plain soy yogurt
1/4 teaspoon finely shredded lemon peel
2 teaspoons lemon juice
1/4 teaspoon grated fresh ginger
4 cups small broccoli and/or cauliflower florets
1/3 cup finely chopped red onion
1/4 cup dried cranberries
3 tablespoons roasted soy nuts
Directions:
In a large bowl, stir together mayonnaise, soy yogurt, lemon peel, lemon juice, and ginger. Add broccoli, red onion, and cranberries. Toss to coat. Cover and chill for 1 to 24 hours. Just before serving, sprinkle with soy nuts.
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Step for Power
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Get Juiced
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Switch to Cold Water
Almost 90 percent of the energy used to wash clothes is used to heat the water, according to the U.S. Department of Energy. Save money and energy. Wash your clothes in warm or cold water, instead of hot, using a detergent formulated for cold-water use. [13]
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Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia. The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market. Google Finance is the source for any reference to the performance of an index between two specific periods. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. You cannot invest directly in an index. Consult your financial professional before making any investment decision. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors. These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information. By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.
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