Financial News and Portfolio Management Discussion through November 22nd

All the news you need to stay informed about what’s currently driving the market – courtesy of Raffa Wealth Management, LLC.

Global stocks rose over the week aided by announcements of new stimulus measures in China and Europe.  US Stocks hit new record highs with the S&P 500 gaining 1.1% and the Dow rising 1.0% for the week.  Internationally, Japan was down 0.8% and Europe gained 2.9% for the week.  The 10 year Treasury yield was flat for the week finishing at 2.32%.  Article

Japan fell into recession in the third quarter as the country’s GDP contracted 1.6% after a 7.3% contraction in the second quarter.  An increase in sales tax to 8% hit consumers hard.  Prime Minister Abe announced that he will hold off on an additional tax increase and called for a general election in December.  Article

New housing starts fell 2.8% in October, but new single family home building rose 4.8% in a positive sign.

The CPI rose 0.2% in October and is up 1.7% for the trailing year.  Excluding food and energy prices have risen 1.9%.  Article

The People’s Bank of China announced it was cutting its deposit rate by 0.25% to 2.75% and lending rate by 0.40% to 5.60% for the first time since 2012.  The move is in an attempt to improve flagging growth.  Article

The ECB announced it might take new stimulus actions to boost the inflation rate which currently sits near 0%.

Halliburton said it was buying oil field services competitor Baker Hughes for $35 billion.

Actavis announced it was purchasing Allergan, a maker of botox, for $66 billion.

Mergers and acquisitions have surged in 2014 on low financing costs and stock increases, hitting $3.1 trillion in total value with $1.5 trillion in the US. It’s the highest dollar volume since 2007.

Target posted a rise in sales and profit topping their own estimates and Wall Street predictions.

Best Buy’s fiscal third quarter saw sales rise at their fastest pace in over 4 years and profit nearly doubled topping expectations.

 

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Raffa Wealth Management is an independent investment advisor providing nonprofit organizations, high net-worth investors, and qualified retirement plans with a full range of investment consulting services.  We were established to fill the need for transparency, clarity, and vision in the professional management of investment assets.   Visit us at www.raffawealth.com

There is no guarantee that any investment strategy, including those described here, will be successful. Any investment or investment strategy can lose money. Past performance does not guarantee or predict future results. You should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Raffa Wealth Management, LLC. This information was gathered from reliable sources but we cannot guarantee accuracy. Indexes do not reflect the fees associated with actual investments and such fees would reduce the performance illustrated.
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