Market Graphs
Asset Classes & Rates
The Month Ending 2/10/2012:

Now that we are in mid-February, the summary table includes the usual week-, month- and year-to-date
returns along with the 52-Week returns.  The first part of 2012 has had strong returns but the markets took a
breather last week.  Most asset class WTD returns start with a negative sign.  A nice way to capture the
market sentiment of the lingering European credit crisis is bond market (see second graph).  Greece is
literally off the charts but Italy and Spain saw a significant drop in yield in January but since slowed or even
risen, indicating lingering concerns.  The Greek parliament voted over the weekend to the necessary cuts to
secure financing.  However, the lenders are requiring specifics in writing this time given the multiple rounds
of negotiations.
Last week's economic calendar was fairly light.  One important data release each week is the jobless claims
(see blue line in graph below).  The week-to-week readings can be volatile but the 4-week moving average
trend (red line) is instructive.  Much attention has been given to the decreasing labor participation rate and its
impact on the lowering unemployment rate.  For those who want the math see the formula below.  The
denominator is shrinking.

    Unemployment Rate = { (% Population Employed) / (% Population Working or Actively Looking) } - 1

This week's key economic data include Producer and Consumer Price Index.  The minutes from the January
FOMC meeting will also be released.  Recall that meeting resulted in extending the low rate commitment to
late 2014 and an explicit inflation target so the meeting minutes may provide further insight.
You should have received the necessary tax statements by now to complete your 2011 tax return (brokerage
firms were allowed 2 extra weeks due to required cost basis reporting for STOCKS PURCHASED IN 2011 -
NOT FOR OLDER TRANSACTIONS).  If you are likely to get a refund, don't delay.  Given the potential changes
for tax rates in 2013 for capital gains, qualified dividends and investment gains subject to 3.8% Medicare tax
for high income, pay special attention to the different components of your Form 1040.