Financial News and Portfolio Management Discussion through August 29th

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

Global markets were whipsawed during the week driven by concerns over China’s growth with most markets finishing up. After plunging over the first two days markets rallied heavily over the next two days. The S&P 500 rose 0.9% and the Dow gained 1.1% for the week. Internationally, Japan sank 1.5%, while Europe edged up 0.6% for the week. The 10 Year Treasury yield rose to 2.19% over the week as equity market volatility eased. Oil prices also bounced around falling below $40 a barrel before rallying over 10% and finishing the week at $45.22.  Article

In response to the plunge in its markets China cut interest rates a quarter point and flooded its banking system with cash.  Article

The NY Fed Chief said in a statement that a rate increase in September has become “less compelling” in light of China’s slowdown and the recent market events.

Durable goods orders, a measure of business investment came in higher than expected in July and June was revised up.

In its second revision of 2Q GDP the Commerce Dept. announced that GDP grew at a 3.7% rate instead of the 2.3% initially estimated. Consumer spending grew and helped drive the increase.  Article

Brazil’s GDP contracted 1.9% in the second quarter, worse than expected, and fell for the second consecutive quarter putting the economy in recession.

Consumer spending rose 0.3% in July matching June’s pace. In addition American incomes rose 0.4%.  Article

Best Buy surprised investors with an increase in earnings and a larger market share.

 

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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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