With the recent market turmoil January is on track to be the worst month for the S&P 500 since February 2009, the last month of financial crisis losses before the market began its rebound. Make a note …. That downturn ended …. so will this one. There is nothing a long-term investor with a well-diversified and balanced portfolio can and should do in response to this correction. (CNBC)
In the move to reduce holdings of assets perceived to be risky, the average cash balances of investors have climbed to 5.4%, the third-highest level since 2009. Remember no one can time the market. The only way to lock in certain losses is to sell your investments in a down cycle. (CNBC)
Mortgage application volume jumped 9% for the week over week, according to the Mortgage Bankers Association. Refinancing was the driver of total volume, surging 19%, but are 40% below a year ago. Applications to purchase a home fell 2% week-to-week, but are 17% higher than a year ago.
U.S. consumer prices fell in December as the cost of energy goods dropped and services rose. According to the Labor Department the Consumer Price Index slipped 0.1%. The CPI increased 0.7% for 2015. Last month, energy prices dropped 2.4% percent, with gasoline tumbling 3.9%. Food prices fell for a second straight month.
The S&P 500 is up 1 and the NASDAQ is up 10. The MSCI international index is down 0.21%.
Oil is down 32 cents at $28.03 a barrel.
Gold is down $7 at $1100 a Troy ounce.