The first trading month of the year is going to end like it started… … on a down note.  Despite yesterday’s bounce to the upside markets continue to be rattled by foreign currency struggles in the emerging markets and the specter of deflation in Europe.  But as we have said in the past this correction is not the end of the world and if you are properly diversified there is nothing to fear. If early trading is any indication the S&P 500 will end the month down over 4%.  This will be the first January loss as measured by the S&P 500 since 2009. (CNBC)

Personal income in December was unchanged and consumer spending was up 0.4%.  In this country inflation remains in check running at a 1.2% annual rate. Inflation was a little hotter than expected stalling worries about deflation in the US. (Federal Reserve)

Wal-Mart will not be helping things today with their announcement that profits will be below analyst expectations for 2013. Most of the impacts on the bottom-line are associated with expenses related to stores in the emerging markets, mostly Brazil and China. (Business Wire)

The US House of Representatives passed a long delayed farm bill yesterday.  Depending on your view it could be good or bad for Oregon Christmas Tree growers.  The bill will allow the implementation of a 15 cent per tree tax to fund research and promote the industry.  

The price of gasoline is fairly steady heading into the weekend.  Triple-A reports the average for regular in the Portland area is just above three-28, less than a penny below the average of a week ago.  Regular gas sold in Portland for an average of about three-38 a gallon at this time last year.

Join us Saturday at 10 for Financial Focus Radio when we will talk about this correction and why smart investors should not be worried.