Weekly Update

The Markets                            Financial markets were down sharply on the week. Markets were down Wednesday, Thursday and Friday on continued uncertainty regarding potential regulatory changes and the possibility of restrictions on financial institution activity. Added to this uncertainty was mixed earnings announcements from the corporate sector as earnings season continues and the distinct possibility that Bernanke would not be renamed Fed Chairman. By week’s end, investors were increasingly concerned that the nascent economic recovery was under pressure with many pundits calling for a potential “double-dip”.   Market/Index 2009 Close Prior Week As of 01/22/10 Week Change YTD Change DJIA 10428.05 10609.05 10172.98 (4.11)% (2.79)% S&P 500 1115.10 1136.03 1091.76 (3.90)% (2.09)% MSCI World 1168.47 1198.22 1149.89 (3.83)% (0.81)% Russell 2000 625.39 637.96 617.12 (3.27)% (2.57)% Fed. Funds .25% .25% .25% 0 bps 0 bps 10-year Treasuries 3.84% 3.68% 3.62% (6) bps (22) bps Last Week's Headlines ·      New housing starts fell by 4% surprising analysts expecting an increase ·         Conference Board Index of Leading Indicators increased for the ninth consecutive month ·         Producer prices increased 0.2% for the month and 4.4% for the year, due mainly to increasing energy prices   Upcoming Items of Interest ·         Continued earnings announcements for 4Q09 and calendar year 2009 ·         Fed announcement on short term rates on Wednesday ·         4Q GDP announced on Friday ·         Existing home sales on Monday, consumer confidence on Tuesday, new home sales on Wednesday, durable goods orders on Thursday and employment cost index on Friday    Data source: All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Headlines and upcoming items of interest are pulled from published reports of Vanguard, Briefing.com and Reuters. Past performance is no guarantee of future results. The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. The MSCI World Index is a free-float adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.