One year ago, as the economy was in the depths of the recession and the stock market made the low for the decade, a frequently asked question had to do with buying gold. The question was not just about whether gold investment vehicles were a good investment, but whether to consider precious metals to stash away as civilization unraveled.
How far back from the brink we have come was evident recently when the world’s largest seller of gold coins, Austrian mint Muenze Oesterreich, announced plans to slash production after demand has fallen by 80% from the record levels of a year ago, according to the Austrian Mint. Sales of all gold coin types fell to 53,930 ounces in the first two months of 2010, compared with 267,091 ounces in the same period a year before. Gold bar sales fell 74% to 69,636 ounces.
The transition from economic recovery to sustainable growth is underway. The progress is uneven which may cause the markets and economic data to encounter volatility, but the economy is becoming healthy again. The improving credit markets and the return of economic and profit growth both here and abroad have coincided with the return of investor confidence. Specifically, over the past year:
Retail sales are up 4%*
Home sales are up 7% and prices are up slightly^
The stock market, measured by the S&P 500, is up 73% from the low point
Profits for S&P 500 companies are up over 25%
Orders for manufactured goods are up 10%*
Exports from the U.S. are up 18%*
First time filings of claims for unemployment benefits are down 32%˚
Sources: *Commerce Department, ^National Association of Realtors, ˚ Department of Labor
The recovery has been strong and now the U.S. economy is on the cusp of finally creating new jobs. This is evident in the 50,000 temporary workers hired in each of the past three months and an increase in the number of overtime hours being worked. Job growth is an essential component of sustainable growth.
The extremes of fear and euphoria evident in the markets in recent years may provide astute investors a golden opportunity. Taking action to profit or protect from extremes in investor behavior are essential components of a sound long-term investment plan. We remain focused on navigating the volatility ahead as the transition to sustainable growth unfolds.
As always, please contact me if you have any questions.
Best regards,
Christopher S. Laws, CFP™100 North Point Center EastSuite 530Alpharetta, GA 30022(770) 995-7101(770) 995-7101The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. This research material has been prepared by LPL Financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult me prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.lllThe LPL Financial family of affiliated companies includes LPL Financial and UVEST Financial Services Group each of which is a member of FINRA/SIPC.lll Not FDIC/NCUA Insured | Not Bank/Credit Union Guaranteed | May Lose Value | Not Guaranteed by any Government Agency | Not a Bank/Credit Union DepositlllCompliance #625537
This entry was posted on Thursday, March 11th, 2010 at 8:07 pm and is filed under Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
On the Cusp of Sustainable Growth
One year ago, as the economy was in the depths of the recession and the stock market made the low for the decade, a frequently asked question had to do with buying gold. The question was not just about whether gold investment vehicles were a good investment, but whether to consider precious metals to stash away as civilization unraveled.
How far back from the brink we have come was evident recently when the world’s largest seller of gold coins, Austrian mint Muenze Oesterreich, announced plans to slash production after demand has fallen by 80% from the record levels of a year ago, according to the Austrian Mint. Sales of all gold coin types fell to 53,930 ounces in the first two months of 2010, compared with 267,091 ounces in the same period a year before. Gold bar sales fell 74% to 69,636 ounces.
The transition from economic recovery to sustainable growth is underway. The progress is uneven which may cause the markets and economic data to encounter volatility, but the economy is becoming healthy again. The improving credit markets and the return of economic and profit growth both here and abroad have coincided with the return of investor confidence. Specifically, over the past year:
Sources: *Commerce Department, ^National Association of Realtors, ˚ Department of Labor
The recovery has been strong and now the U.S. economy is on the cusp of finally creating new jobs. This is evident in the 50,000 temporary workers hired in each of the past three months and an increase in the number of overtime hours being worked. Job growth is an essential component of sustainable growth.
The extremes of fear and euphoria evident in the markets in recent years may provide astute investors a golden opportunity. Taking action to profit or protect from extremes in investor behavior are essential components of a sound long-term investment plan. We remain focused on navigating the volatility ahead as the transition to sustainable growth unfolds.
As always, please contact me if you have any questions.
Best regards,
Christopher S. Laws, CFP™ 100 North Point Center East Suite 530 Alpharetta, GA 30022 (770) 995-7101 (770) 995-7101 The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. This research material has been prepared by LPL Financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult me prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly. lll The LPL Financial family of affiliated companies includes LPL Financial and UVEST Financial Services Group each of which is a member of FINRA/SIPC. lll Not FDIC/NCUA Insured | Not Bank/Credit Union Guaranteed | May Lose Value | Not Guaranteed by any Government Agency | Not a Bank/Credit Union Deposit lll Compliance #625537Like this:
This entry was posted on Thursday, March 11th, 2010 at 8:07 pm and is filed under Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.