Presented by Mark Lund, The Investor Coach.

Quote of the week. “Nothing in life is to be feared. It is only to be understood.”– Marie Curie

Reforms become law. President Obama signed his long-envisioned health care reforms into law on March 23, and he will sign the amendments to the bill into law on March 30. Most of the major changes will take effect in 2014, when health insurance will become compulsory for nearly all Americans. New taxes will help fund the reforms. The Congressional Budget Office estimates that the modifications will cut the federal deficit by $118 billion by 2020.^1,2,3

Home sales still underwhelming. Existing home sales dipped 0.6% for February while new home sales slipped 2.2% to another all-time low (although data only goes back to 1964). Any positives in the new Commerce Department report? Yes. The median sale price of new homes was about 5% above where it was a year ago.⁴

A gain in durable goods orders. The 0.5% rise in February was accompanied by news that durable goods inventories increased by 0.3%, the best such gain since December 2008.⁵

USDI surges north. When the U.S. Dollar Index is up 1.10% for the week (and 4.82% for the month), what happens with gold and oil? Well, gold and oil prices respectively fell 0.30% and 1.20% last week, with crude futures at exactly $80.00 per barrel at Friday’s close on the NYMEX.⁶

S&P 500 climbs 5.62% in 4 weeks. Stocks had another fine week from March 22-26, with the NASDAQ advancing 0.87%, the Dow 1.01% and the S&P 500 0.58% as part of a great 4-week run.⁷

(Source: CNBC.com, BigCharts.com, ustreas.gov, bls.gov, 3/26/10)^8,9,10
Indices are unmanaged, do not incur fees or expenses, and cannot be
invested into directly. These returns do not include dividends.

Riddle of the week. Two-and-a-half artists spend two-and-a-half hours painting two-and-a-half models on two-and-a-half canvases. How many artists would be necessary to paint 24 models on 24 canvases in 20 hours?

Contact my office or see next week’s Update for the answer.

Last week’s riddle: Is there a number made of eleven tens of thousands, eleven thousands, eleven hundreds and eleven units? If so, what is it??

Last week’s riddle answer: Yes – the number is 122,111. 110,000 + 11,000 + 1,100 + 11 = 122,111.

Citations.
1 nytimes.com/2010/03/23/health/policy/23health.html?ref=us [3/23/10]
2 voices.washingtonpost.com/44/2010/03/obama-to-sign-health-care-fixe.html?wprss=44 [3/26/10]
3 cnn.com/2010/POLITICS/03/21/health.care.main/?hpt=Sbin [3/21/10]
4 foxbusiness.com/story/markets/industries/industrials/february-new-home-sales–annual-rate/ [3/24/10]
5 reuters.com/article/idUSN239670720100324?type=marketsNews [3/24/10]
6 cnbc.com/id/36057788/page/2/ [3/26/10]
7 blogs.wsj.com/marketbeat/2010/03/26/data-points-us-markets-221/ [3/26/10]
8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=3%2F26%2F09&x=0&y=0 [3/26/10]
8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=3%2F26%2F09&x=0&y=0 [3/26/10]
8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=3%2F26%2F09&x=0&y=0 [3/26/10]
8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=3%2F25%2F05&x=0&y=0 [3/26/10]
8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=3%2F25%2F05&x=0&y=0 [3/26/10]
8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=3%2F25%2F05&x=0&y=0 [3/26/10]
8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=3%2F27%2F00&x=0&y=0 [3/26/10]
8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=3%2F27%2F00&x=0&y=0 [3/26/10]
8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=3%2F27%2F00&x=0&y=0 [3/26/10]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [3/26/10]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [3/26/10]
10 treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

These views are those of Peter Montoya Inc., and not the presenting Representative’s Broker/Dealer, and should not be construed as investment advice. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx^®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. www

Quote of the week. “No day in which you learn something is a complete loss.”– David Eddings

Inflation? What inflation? Inflationary pressures remain weak in this subdued recovery. The Consumer Price Index was flat in February; core CPI rose 0.1%. CPI only advanced 2.1% over the last 12 months of data. Core CPI rose 1.3% in that period, the smallest year-over-year gain in six years. The Federal Reserve forecasts core CPI advancing 1.2% for all of 2010.^1,2

PPI drops in February. Producer prices decreased by 0.6% last month after a 1.4% rise in January; core PPI advanced 0.1%. Industrial production managed to rise 0.1% even with February’s rough weather.^2,3

Tiny LEI gain. Another 0.1% advance here: the Conference Board’s Leading Economic Index was positive for the eleventh straight month in February.⁴

Snow stalls housing starts. They fell 5.9% last month, according to the Commerce Department. Yet February housing starts and building permits were respectively 0.2% and 11.3% above year-ago levels.⁵

Oil drops, gold gains. Oil futures fell 0.69% across last week to close at $80.68 a barrel on the NYMEX Friday. Gold, however, gained $5.90 last week; even with a $20.00 drop Friday, it ended the five-day stretch at $1,107.40.⁶

Eight-day win streak for the Dow. That streak – the longest since August – helped the index rise 1.10% across last week to 10,741.98. Looking at the other two marquee indices, the S&P 500 gained 0.86% last week while the NASDAQ rose 0.29%.⁷

(Source: CNBC.com, CNNMoney.com, ustreas.gov, bls.gov, 3/19/10)^7,8,9,10
Indices are unmanaged, do not incur fees or expenses, and cannot be
invested into directly. These returns do not include dividends.

Riddle of the week. Is there a number made of eleven tens of thousands, eleven thousands, eleven hundreds and eleven units? If so, what is it?

Contact my office or see next week’s Update for the answer.

Last week’s riddle: Three light switches are in the “off” position. Each connects to a light bulb in an adjoining room that you cannot see into. You can freely switch the light bulbs on and off, but you can only go into the adjoining room once to check on the state of the bulbs. Is it possible to tell which switch controls which bulb?

Last week’s riddle answer: Yes. Leave switch A on for several minutes, then switch it off and turn on switch B before entering the next room. The lit bulb correlates with switch B, the dark cool bulb with switch C, and the dark but still-warm bulb with switch A.

Citations.
1 marketwatch.com/story/story/print?guid=A37FB003-34F9-41A5-83B4-823778033C51 [3/18/10]
2 businessweek.com/news/2010-03-17/producer-prices-in-u-s-dropped-more-than-forecast-update1-.html [3/17/10]
3 marketwatch.com/story/us-feb-industrial-output-up-01-despite-snow-2010-03-15?reflink=MW_news_stmp [3/15/10]
4 dailyfinance.com/story/leading-economic-indicators-rose-again-in-february/19404951/ [3/18/10]
5 latimesblogs.latimes.com/money_co/2010/03/housing-starts-fell-5-point-9-percent-in-february.html [3/19/10]
6 blogs.wsj.com/marketbeat/2010/03/19/data-points-energy-metals-244/ [3/19/10]
7 cnbc.com/id/35952832 [3/19/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F19%2F09&mode=add&symb=DJIA [3/19/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F18%2F05&mode=add&symb=DJIA [3/19/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F20%2F00&mode=add&symb=DJIA [3/19/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F19%2F09&mode=add&symb=COMP [3/19/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F18%2F05&mode=add&symb=COMP [3/19/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F20%2F00&mode=add&symb=COMP [3/19/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F19%2F09&mode=add&symb=SPX [3/19/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F18%2F05&mode=add&symb=SPX [3/19/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F20%2F00&mode=add&symb=SPX [3/19/10]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [3/19/10]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [3/19/10]
10 treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

These views are those of Peter Montoya Inc., and not the presenting Representative’s Broker/Dealer, and should not be construed as investment advice. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx^®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. The market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.

Presented by Mark Lund, The Investor Coach.

Quote of the week. “Getting people to like you is merely the other side of liking them.”– Norman Vincent Peale

Good news at the cash register. Commerce Department data showed retail purchases up by 0.3% in February despite all the snow, sleet and rain, and 3.9% above where they were a year earlier. Most retail sales sectors had month-over-month increases.¹

Signs of rising demand. Business sales increased by 0.6% in January (business inventories were flat). January 2010 business sales were 6.8% better than a year before. Other Commerce Department data shows wholesale sales jumping by 1.3% in January and wholesale stockpiles decreasing by 0.2%.^2,3

Consumer confidence wavers. The preliminary Reuters/University of Michigan consumer sentiment survey is in for March. The index reads 72.5, down from a final 73.6 in February. However, things have improved notably from March 2009 when the gauge stood at 57.3.⁴

Gold & oil retreat. Gold had its poorest week since mid-January as prices dipped 2.93% last week to settle at $1,101.50 Friday on the COMEX. Oil fared better, losing just 0.32% across five days. Oil futures were $81.24 a barrel at Friday’s NYMEX close.⁵

Nice gains on Wall Street. Stocks pulled off weekly gains during a stretch of five trading days with only mild volatility. The DJIA advanced 0.55% last week, while the S&P 500 rose 0.99% and the NASDAQ gained 1.78%. The S&P 500 closed Friday at a 17-month high: 1,149.98.⁶

(Source: CNBC.com, CNNMoney.com, ustreas.gov, bls.gov, 3/12/10)^6,7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be
invested into directly. These returns do not include dividends.

Riddle of the week. Three light switches are in the “off” position. Each connects to a light bulb in an adjoining room that you cannot see into. You can freely switch the light bulbs on and off, but you can only go into the adjoining room once to check on the state of the bulbs. Is it possible to tell which switch controls which bulb?

Contact my office or see next week’s Update for the answer.

Last week’s riddle: What should the last entry be in the following sequence of numbers … 9|18, 8|46, 7|94, 6|63, 5|52, 4|__?

Last week’s riddle answer: Each sequence represents the square root of a number with digits reversed (9 is the square root of 81, 8 is the square root of 64, and so on). So the missing number is 61 (4 is the square root of 16).

Citations.
1 marketwatch.com/story/retail-sales-shake-off-the-snows-of-feb-2010-03-12 [3/12/10]
2 dailyfinance.com/story/business-inventories-flat-in-january/19396378/ [3/12/10]
3 businessweek.com/news/2010-03-10/wholesale-inventories-in-u-s-fell-0-2-in-january-update1-.html [3/10/10]
4 abcnews.go.com/Business/wireStory?id=10083589 [3/12/10]
5 blogs.wsj.com/marketbeat/2010/03/12/data-points-energy-metals-239/ [3/12/10]
6 cnbc.com/id/35840993 [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F12%2F09&mode=add&symb=DJIA [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F11%2F05&mode=add&symb=DJIA [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F13%2F00&mode=add&symb=DJIA [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F12%2F09&mode=add&symb=COMP [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F11%2F05&mode=add&symb=COMP [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F13%2F00&mode=add&symb=COMP [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F12%2F09&mode=add&symb=SPX [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F11%2F05&mode=add&symb=SPX [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F13%2F00&mode=add&symb=SPX [3/12/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [3/12/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [3/12/10]
9 treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

These views are those of Peter Montoya Inc., and not the presenting Representative’s Broker/Dealer, and should not be construed as investment advice. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx^®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. The market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.

Presented by Mark Lund, The Investor Coach.

Quote of the week. “A person will be just about as happy as they make up their minds to be.”– Abraham Lincoln

9.7% and holding. The Labor Department reported only 36,000 net job losses last month, so the jobless rate was flat for February. Economists had widely assumed the unemployment rate would inch upward due to winter weather affecting construction and retail industries.¹

Major boost in factory orders. They rose 1.7% in January, according to Commerce Department data. This is the best number in four months and follows a 1.5% advance for December.²

Pending home sales sink. What does the 7.6% fall for January indicate? It would seem to signal that the extended tax credits have become less magnetic to buyers. Let’s hope sales hold up this spring as the Fed ceases its purchases of mortgage-linked securities.³

Gold, copper, oil go higher. Copper prices rose 4.10% last week to $0.134/lb. Gold gained $16.50 last week (1.48%) to settle at $1,134.80 an ounce Friday. Crude futures rose $1.84 last week (2.31%) to $81.50 per barrel on the NYMEX at Friday’s close.⁴

March of the bulls? Wall Street was buoyed by the unchanged jobless rate on Friday, and the Dow climbed 122.06 to cap off its 2.33% weekly gain. The S&P 500 did even better: a 3.10% rise on the week to 1,138.70 at the closing bell on Friday. The NASDAQ? It advanced 3.94% on the week to 2,326.56.⁵

(Source: CNBC.com, CNNMoney.com, ustreas.gov, bls.gov, 3/5/10)^5,6,7,8
Indices are unmanaged, do not incur fees or expenses, and cannot be
invested into directly. These returns do not include dividends.

Riddle of the week. What should the last entry be in the following sequence of numbers … 9|18, 8|46, 7|94, 6|63, 5|52, 4|__?

Contact my office or see next week’s Update for the answer.

Last week’s riddle: Al gives Jane three boxes, one labeled DIAMONDS, one labeled PEARLS and one labeled DIAMONDS OR PEARLS. He tells her that all three boxes are labeled incorrectly and that one box contains diamonds, one pearls and the other emeralds. Al then tells Jane that if she can guess the contents of any box without opening it, she can keep the contents. How many boxes must Jane open to do this, and/or how many boxes can she keep?

Last week’s riddle answer: Jane keeps everything and does not need to open any box. Since each box is labeled incorrectly, the box labeled “Diamonds or Pearls” must contain emeralds. Therefore the box labeled “Pearls” must contain diamonds, and the box labeled “Diamonds” must contain pearls.

Citations.
1 washingtonpost.com/wp-dyn/content/article/2010/03/05/AR2010030500571.html [3/5/10]
2 latimesblogs.latimes.com/money_co/2010/03/new-factory-orders-up-17-in-january-largest-increase-since-september.html [3/4/10]
3 businessweek.com/news/2010-03-04/u-s-economy-pending-sales-of-existing-homes-unexpectedly-drop.html [3/4/10]
4 blogs.wsj.com/marketbeat/2010/03/05/data-points-energy-metals-236/ [3/5/10]
5 cnbc.com/id/35729112 [3/5/10]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F5%2F09&mode=add&symb=DJIA [3/5/10]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F4%2F05&mode=add&symb=DJIA [3/5/10]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F6%2F00&mode=add&symb=DJIA [3/5/10]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F5%2F09&mode=add&symb=COMP [3/5/10]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F4%2F05&mode=add&symb=COMP [3/5/10]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F4%2F00&mode=add&symb=COMP [3/5/10]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F5%2F09&mode=add&symb=SPX [3/5/10]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F4%2F05&mode=add&symb=SPX [3/5/10]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F4%2F00&mode=add&symb=SPX [3/5/10]
7 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [3/5/10]
7 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [3/5/10]
8 treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

These views are those of Peter Montoya Inc., and not the presenting Representative’s Broker/Dealer, and should not be construed as investment advice. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx^®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. The market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards

Presented by Mark Lund, The investor Coach.

Quote of the week. “He who has a why to live can bear almost any how.”– Friedrich Nietzsche

Stocks log best month since November. The S&P 500 rose 2.85% last month even with worries over Greece, China and the U.S. housing and job markets. The S&P had its best February in 12 years.^1,2

4Q GDP revised to 5.9%. That tops the initial 5.7% estimate from the Commerce Department. It means 4Q 2009 was the strongest quarter since 3Q 2003.³

Home sales in deep freeze. The January numbers were very poor: -7.2% for residential resales, -11.2% for new homes. However, existing home sales were 11.5% above where they had been a year before.⁴

Case-Shiller index: home prices rising. The widely watched 20-city home price index posted its seventh straight monthly gain in December. Prices increased in 15 of the index’s 20 metro areas.⁵

Durable goods orders up 3.0%. The January figure from the Commerce Department was hugely positive. Yet with transportation orders factored out, durable goods orders were down 0.6%.⁵

Less confidence last month? The February Conference Board index of consumer confidence fell to 46.0 from 55.9 in January. The index’s assessment of current conditions was the lowest since 1983.⁶

Soft week but strong month. The major U.S. indexes lost from 0.25% (NASDAQ) to 0.74% (Dow) last week. Monthly gains were quite strong: DJIA, +2.56%; NASDAQ, +4.23%; S&P 500, +2.85%.¹

(Source: CNBC.com, CNNMoney.com, ustreas.gov, bls.gov, 2/26/10)^1,7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be
invested into directly. These returns do not include dividends.

Riddle of the week. Al gives Jane three boxes, one labeled DIAMONDS, one labeled PEARLS and one labeled DIAMONDS OR PEARLS. He tells her that all three boxes are labeled incorrectly and that one box contains diamonds, one pearls and the other emeralds. Al then tells Jane that if she can guess the contents of any box without opening it, she can keep the contents. How many boxes must Jane open to do this, and/or how many boxes can she keep?

Contact my office or see next week’s Update for the answer.

Last week’s riddle: In 15 minutes, a dress will dry on a clothes wire. How long would it take you to dry five dresses?

Last week’s riddle answer: 15 minutes.

Citations.
1 cnbc.com/id/35601889 [2/26/10]
2 cnbc.com/id/35607823 [2/26/10]
3 online.wsj.com/article/SB10001424052748704625004575089030822996718.html?mod=WSJ_hpp_LEFTWhatsNewsCollection [2/26/10]
4 latimesblogs.latimes.com/money_co/2010/02/sales-of-existing-homes-fall-72-in-january.html [2/26/10]
5 sfgate.com/cgi-bin/article.cgi?f=/n/a/2010/02/23/financial/f112032S90.DTL [2/23/10]
6 smartmoney.com/investing/economy/the-other-consumer-confidence-index/ [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F26%2F09&mode=add&symb=DJIA [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F05&mode=add&symb=DJIA [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F00&mode=add&symb=DJIA [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F26%2F09&mode=add&symb=COMP [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F05&mode=add&symb=COMP [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F00&mode=add&symb=COMP [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F26%2F09&mode=add&symb=SPX [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F05&mode=add&symb=SPX [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F00&mode=add&symb=SPX [2/26/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [2/26/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [2/26/10]
9 treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

These views are those of Peter Montoya Inc., and not the Representative’s Broker/Dealer, and should not be construed as investment advice. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx^®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. The market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.