Accuvest Weekly Chartbook – December 20, 2013

Please use the AGA Weekly Chartbook link below to access this week’s Chart Book.

AGA Weekly Chartbook 12.20.2013

Financial Market Update:

  • The Federal Reserve initiated “QE Taper” this week, monthly purchases will drop from $85B to $75B
  • Equities finished the week higher as did US Treasuries and Investment Grade Bonds
  • Credit Spreads, including Mortgage Backed Securities, remain at historically tight levels
  • Volatility and Financial Market Stress dropped after the FOMC announcement
  • Gold, Silver, and Emerging Market currencies sold off as the US Dollar strengthened into week’s end
  • Q3 US GDP was revised to 4.1% up from a 3.6% first read
  • Industrial Production and Leading Indicators beat expectations, while Jobless Claims , CPI, and Housing Starts missed
  • UST 30 year yield dropped to close the week, finishing at 3.82%, down from 3.90%
  • UST 10 year yield remains below Sept highs and closed the week at 2.89%
  • Emerging Market Bond Spreads have narrowed 35bps this month
  • The S&P 500 (+27.5%)  is on pace for its best year since 1997
  • S&P 500 and MSCI EM 12M forward earnings growth is forecasted to be around 9%, compared to 36% for the MSCI EAFE
  • The US Dollar has broken out to new 12 month highs versus the Japanese Yen
  • The Euro remains below resistance and at the higher end of its 12 month range
  • Commodities are attempting to breakout of a 2 year downtrend
  • Gold sold off this week, closing at 1203/oz. and is testing 3 year lows established in June

Best Regards,

James

disclosure: The opinions expressed in this Weekly Chart Book report are those of the author. The materials and commentary are strictly informational and should be used for research use only. This bulletin is not intended to provide investing or other advice or guidance with respect to the matters addressed in the bulletin. All relevant facts, including individual circumstances, need to be considered by the reader to arrive at investment conclusions that comply with matters addressed in this bulletin. Charts and information used in this report are sourced from Bloomberg.

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