Your Local Resource for Expert Financial Guidance and Support

Weekly Economic Update: December 11, 2023

The Dow Jones Industrial Average was flat (+0.01%), while the Standard & Poor’s 500 gained 0.21%. The Nasdaq Composite index advanced 0.69% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, was up 0.37%.

Stocks Extend Gains
The relationship between the bond and stock markets–which pushed stocks higher in November (i.e., falling bond yields, rising stock prices)–disappeared last week, with stocks falling in the first three days of the week despite declining yields. Yields dropped following a weak job openings report, the ADP employment update, and a substantial productivity revision.

On Thursday, investor enthusiasm returned with force on Artificial Intelligence (AI) related news. One AI chip manufacturer announced a new AI chip, followed by a mega-cap tech company unveiling an enhanced version of its AI model for business use. Stocks continued their climb on Friday despite rising yields, as investors viewed a stronger-than-expected employment report as increasing the potential for a soft landing. 

Avoid This Common Pitfall: Update your Beneficiaries

What’s Driving Gold Prices?

Anyone with an interest in financial happenings may have noticed more than a few mentions of “gold" in the news. Sure, some view it as a key asset to hold during periods of market volatility, but that doesn't quite explain the media's sudden love for gilded headlines.

So what gives? Several factors appear to be influencing spot prices, including investor expectations of a Fed rate cut, a weakening US dollar, and geopolitical instability in the Middle East. Many, including a number of central banks who have recently purchased gold, view it as a key asset to hold during periods of market volatility.*

When interest in gold is high, there’s a good chance you'll also see aggressive marketing. Some of these ads engage in clever sleight-of-hand, attempting to sell gold coins, bars, or other precious metal products for “collector” prices— which are almost always significantly higher than the market value of the gold itself.

If you’re interested in this or other topics concerning the latest market conditions or the larger forces behind the moves, let us know.

*Bloomberg.com, December 4, 2023. "Here’s How to Invest in Gold as It Hits an All-Time High.”

Parting Shot

One River North, 3930 Blake Street, Denver

This building, due to open in the next few weeks, will include 187 for-lease residences and features open-air amenity environments, including rippling water elements and a landscaped, trail-like walkway that traverses across four floors. It has a rooftop terrace with a pool, spa, and garden framed by distant Rocky Mountain views. One River North is only the third in the United States designed by MAD Architects, a Beijing firm known for its “biophilic” approach that melds natural elements into building designs. 

Photo at top: WilsonAxpe PhotoAdvocacy "The Lookout" Sand Wash Basin, Colorado. 

Capstone built our reputation on friendly service, impeccable honesty, and respect for every client. Our clients’ needs drive our relationship, and the focus is always on you. We strive to be highly responsive to your requests and are skilled at creating solutions customized to your goals, values, and situation.  Reach out anytime with questions. We're happy to help!

Capstone Investment Financial Group, LLC

Colorado Springs/Denver

719-477-9883

info@capstoneinvest.com