August 27, 2010

Market Wrap: for the week ending August 27, 2010

Noteworthy...
• US real GDP grew at an annual rate of 1.6% in the second quarter of 2010 (ESA)
• US consumer sentiment rose to 68.9 in August from 67.8 in July (Reuters)
• The yield on the two-year notes fell to a record low of 0.46% (NY Times)
• The yield on the 10-year fell as low as 2.47% on Tuesday morning (NY Times)
• US Dollar fell below 84 versus Japanese Yen, closing the week at 85.19 (eSignal)
• Industrial new orders were up by 2.5% in Euro area (Eurostat)
• US new home sales were in July were 12.4% below June rate and 32.4% below June 2009 (ESA)
• US Durable Goods orders in July 2010 increased 0.3% to $193.0 billion (ESA)

Weekly Market Barometers

stock2010-0827 fx2010-0827

Chart Of The Week
Courtesy of Political Calculations, please find the chart of the week below.  As we reported last week, interest rates have been pushed down to their lowest levels for the year and with treasury yields near historic lows, the market does not appear to be worried about inflation at all.  One industry that has been bucking that low/no inflation trend for more than a decade now is the healthcare industry.  Despite numerous bi-partisan efforts, healthcare costs have been rising like clock-work each year.  No change in that trend is expected anytime soon…

trend-average-single-and-family-health-premiums-2000-2009
source: http://politicalcalculations.blogspot.com/

Recommended Read
In case you are uncertain about the US economic outlook, rest assured that you are not alone!  Our recommended read for this week comes from Jackson Hole courtesy of Ben Bernanke and his “Economic Outlook and Monetary Policy”.  Curious to learn if you will be more certain or more uncertain about the prospects for the US economy after reading Mr. Bernanke’s speech..

Good luck and good investing!

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