Equity markets were in for a volatile ride this week, with stocks posting their worst one-day drop this year on Monday. With bullish momentum undeniably being a dominant force on Wall Street since the new year, such a steep correction was perhaps expected. Equities managed to bounce back, however, following a slew of relatively good earnings and economic reports [see Visual History Of The S&P 500].
On the global economic front, investors kept a close eye on the eurozone once again as controversies surrounding a criminal investigation into Italian banks and a scandal concerning Spanish Prime Minister Mariono Rajoy brought investors’ uncertainties back to the forefront. Meanwhile, investors welcomed somewhat positive data from the Commerce Department who reported orders for manufactured goods to have risen 1.8% in December, just shy of the 2.2% expectation. Also, the Institute for Supply Management reported that the U.S. non-manufacturing sector expanded at a slower rate last month, though the reading was still better than economists’ expectations [see 3 Economic Charts Bears Love To Ignore].
Below we outline seven insightful articles circulating around the financial space this week:
- Establishing Your Top 10 Investment Default Settings at Above the Market
Though setting clear investments plans and goals is a crucial step for every investor, “retirement guru” Robert P. Seawright highlights in this article the importance of our investment “default settings” and how we use them when making key decisions concerning our finances.
- Comparing Advisors to Jim Cramer: Measuring your Professional Alpha at Advisor Perspectives
Bob Veres shares his thoughts on the so-called investment gurus of Wall Street and whether or not do-it-yourself investors following these stock-picking experts are better off than traditional investors who pay for professional asset management.
- 2013 Business Hiring Plans: Employment, Effort, Hours, and Fiscal Uncertainty at The Federal Reserve Bank of Atlanta
Senior economists John Robertson and Ellyn Terry delve into the hot topic of employment in 2013, outlining whether or not fiscal uncertainty will shape businesses’ hiring patterns this year.
- Is This A Good Time To Buy Stocks? at Econbrowser
With equity markets starting off the new year with a bang and rallying to new five-year highs, James Hamilton takes a step back to look at the broader picture, analyzing how much of the seemingly positive economic outlook is already priced in.
- What Does the Big Mac Say About Euro Area Adjustment? at Bruegel
Guntram B. Wolf offers an intriguing and informative take on the “Big Mac Index,” which compares the price of Big Macs across countries, and how it sheds some insight on the currency movements in the eurozone.
- Slicing Up The Global Equity Market Pie at The Capital Spectator
When it comes to constructing an asset allocation strategy, James Picerno sheds some light on how investors can use ETFs to divide up the world’s equity markets, a crucial component of nearly every investor’s portfolio.
- No Free Lunches at Slope of Hope
Trading expert “Springheel Jack” offers his technical analysis on the S&P 500, highlighting key support and resistance levels investors should keep a close eye on over the coming days.
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Disclosure: No positions at time of writing.