Today’s market update…12/3/15

Blackhawk Wealth Advisors, Wealth Advisors, Financial Planner, Blackhawk Financial Planner, Blackhawk Wealth Advisor, East Bay Wealth Advisor, East Bay Financial Planner, Wealth Management
In July of 2012, European Central Bank (ECB) president Mario Draghi surprised the world with his now famous speech which included, “Within our mandate, the ECB is ready to do whatever it takes….”  The confidence he instilled that day day sent the major European stock index up over 2%  and sparked a rally in global stock and bond markets.  Today was the opposite.  Mr. Draghi announced additional measures to stimulate the Euro-zone that were less than expected, disappointed investors and sparked a severe decline in world stock and bond markets.  The  Euro Stoxx 50 index of eurozone equities, a key indicator, began falling even as Draghi was still speaking and ended the day off 3.6%.  Major US stock markets fell between 1 1/2 – 2%.

It was a day of extremes.  The EU’s euro currency made its biggest move in a single day since 2009. It jumped 3.3% vs. the US dollar. Interest rates in the US soared the most in one day in over 2 1/2 years.  One analyst described the day as a voilent reaction to a surprising change in currency values.  Adding to the day’s decline were comments from another central bank chief, Janet Yellen.  The Fed’s chairwoman signaled the Fed is on track to raise interest rates  at its next  meeting in mid-December.

As stewards of your capital entrusted in us, we are dilegent managers and allocators of your account.  In a constant effort to provide strategic investments to optimize gains and reduce risk, our plan includes a solid defense.  Our most proven, reliable defense position also disappointed today as it too was impacted negatively by the day’s extreme price moves.  We remain confident, however, that – both near and long term – our strategies will achieve positive results.

Thanks again for your continued trust and confidence.

Sincerely,

John Gardner
Protect & Prosper