All the news you need to stay informed about what’s currently driving the market – courtesy of Raffa Wealth Management, LLC.
Global stocks plunged to post their first down week of the year on an increase in interest rates. The S&P sank 3.9% and the Dow plunged 4.1% over the week. Internationally, Japan eased 1.5% and Europe fell 3.1% for the week. The yield on the 10 year Treasury finished the week at 2.85% up 0.45% since the beginning of the year and highest level since January 2014. Article
The unemployment report showed that 200,000 new hires were added in January, above expectations and the unemployment rate remained at 4.1%. Wages increased by 2.9% over the past year for the largest jump since June 2009. The increase stoked inflation fears. Article
Auto makers posted disappointing sales to start the year.
American savings rate fell to 2.4% in December the lowest level since the height of the housing boom in the mid 2000s.
GDP growth in the Eurozone rose 2.5% in 2017 the best growth rate since 2007. Growth was primarily driven by gains from France and growth topped the US. Article
US homeownership rose for the first time in 13 years.
At the conclusion of its most recent meeting the Fed announced no changes in the Fed Funds rate and remained optimistic about the economy. Investors believe the Fed will next raise rates in March.
Wells Fargo was forced to replace four board members and had limits placed on how much it could grow its banking business after the Fed cited it in an enforcement action of widespread consumer abuse. Article
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