Weekly Market Recap
June 4, 2012
• Election polls show a tight race in Greece.• The 10-year U.S. Treasury yield fell below 1.5%.
• 1Q12 GDP was revised down to 1.9% saar.• Jobless claims rose to 383,000.• The unemployment rate rose to 8.2%.• The ISM Manufacturing index missed expectations.• Next Week: ISM Nonmaufacturing, International Trade.
Thought of the Week
It is easy to view the glass as half empty, particularlywhen things seem like they may never improve.However, when it comes to investing, it is important tomaintain perspective. As shown in this week’s chart,although the S&P 500’s climb from its March 2009 lowshas not been uninterrupted, the declines have paled incomparison to the rallies. Additionally, these periods ofrisk aversion have been driven by a variety of factorssuch as the situation in Europe, higher oil prices/ArabSpring, the U.S. debt downgrade and a possible hardlanding in China. Although it can be difficult to remaininvested during market declines, equities have showntheir ability to rally despite these issues, suggestinginvestors could benefit from staying the course and notpanicking when markets become volatile.
Question of the week:
As of May 31, 2012, how much had the VIX risen from itsMarch 2012 average level of 16.2?
Prior week's question:
Consumer sentiment came in at a level of 79.3 in May;when was the last time it was at least this high?
Answer to prior week's question:
The last time consumer sentiment was above the Mayreading of 79.3 was October 2007.
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12,29012,21812,45512,119Dow Jones 30
3.282.452.222.1410 Year Municipal
2.971.871.741.4710 Year Treasury
0.450.240.290.252 Year Treasury
0.250.250.250.25Fed Funds Target
-4.91-1.99-2.72-2.06MSCI - EAFE
1 week YTD
4.584.073.933.9130 Year Mortgage
0.290.640.470.476 Month CD
80.8576.9479.6078.12¥ per $
1.641.551.561.53$ per £
1.441.301.251.24$ per €
111.561.5317.5913.24Russell 1000 Growth
72.382.5815.0910.72Russell 1000 Value
Wgt AvgMkt Cap(Bill)DividendYieldP/ETrailingP/EForwardIndexCharacteristics
S&P 500 Sector Returns
S & P 5 0 0 E n e r g y F i n a n c i a l s C o n s u m e r D i s c r . I n d u s t r i a l s T e c h n o l o g y M a t e r i a l s H e a l t h C a r e C o n s u m e r S t a p l e s T e l e c o m U t i l i t i e s - 0 . 1 - 0 . 4 - 2 . 1 - 2 . 5 - 2 . 5 - 2 . 6 - 3 . 5 - 3 . 6 - 3 . 8 - 4 . 6- 3 . 0
S & P 5 0 0 E n e r g y M a t e r i a l s U t i l i t i e s I n d u s t r i a l s H e a l t h C a r e C o n s u m e r S t a p l e s F i n a n c i a l s T e c h n o l o g y C o n s u m e r D i s c r . T e l e c o m 8 . 9 7 . 4 7 . 1 4 . 2 3 . 0 3 . 0 0 . 6 0 . 3 - 0 . 4 - 9 . 6 2 . 6
1 w e e k Y T D
1 w e e k
Y T D
Note: All returns represent total return including dividends.
Chart of the Week
Since March 9, 2009 the S&P 500 has Returned 89%
S&P 500 index level
600700800900100011001200130014001500Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12
Periods of risk aversion+83%+35%+30%-16%-18%-10%