Market Update for June 8, 2008

The markets gave back much of their gains on Friday as oil prices and unemployment surged.

Crude Oil futures finished the up $10.75, or 8.8%, at $138.54 after a government official in Israel said would have to attack Iran if diplomatic efforts failed to halt Iran's nuclear bomb program. Today Israeli officials dismissed Transportation Minister Shaul Mofaz's threat of military action against Iran, stressing that the hawkish remarks do not represent Israel's policy.

The US unemployment rate gained half a percentage point to 5.5% in May, its highest level since October 2004 and biggest one-month increase in 22 years.

Click charts courtesy of Stockcharts.com to view full sized.

Market Statistics for 06/8/08

S&P500

More S&P 500 Charts
(Using Intraday prices):

Last Market High	10/11/07	at	1,576.09
Last Market low	03/17/08	at	1,256.98
Current S&P500 Price			1,360.68
Decline in Pts			215.41
Decline in %			13.7%
Max Decline			20.2%

This means the correction from high to low has been 20.2% and the S&P500 is currently 13.7% off the peak.

The MAX decline in the S&P500 off the high on a closing basis has been 18.6%

DJIA

More DJIA Charts
(Using Intraday prices):

Last Market High	10/11/07	at	14,279.96
Last Market Low	01/22/08	at	11,508.74
Current DJIA Price			12,209.81
Decline in Pts			2070.15
Decline in %			14.5%
Max Decline			19.4%

This means the correction from high to low has been 19.4% and the DJIA is currently 14.5% off the peak.

The decline in the DOW off the high on a closing basis has been 17.1%

NASDAQ:

More NASDAQ Charts
(Using Intraday prices):

Last Market High	10/31/07	at	2,861.51
Last Market Low	03/17/08	at	2,155.42
Current NASDAQ Price			2,474.56
Decline in Pts			386.95
Decline in %			13.5%
Max Decline			24.7%

This means the correction from high to low has been 24.7% and the NASDAQ Composite is currently 13.5% off the peak.

The decline in the NASDAQ off the high on a closing basis has been 24.1%

For more of my recent articles, see:

• The DJIA Priced in Ounces of Gold
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• Chart of US Dollar vs Oil Prices vs S&P500
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• CNBC Bonus Bucks Trivia Answers: Week 4

To see what my monthly newsletter sentiment update looks like, check out this PDF file: "Take Profits & Sell Sentiment Indicators Near The Market Top." That page of my newsletter is from last year with the markets near an all time high at 1540.

Subscribe to my newsletter NOW to see what I recommend today!
.

Fixed Income (6/1/08 update)

• US Treasury Rates: 3-month = 1.89% & 30-Yr = 4.72% More US Treasury Rates
  
  
• Best CD Rates: (Updated once a month or more often)
  
• 1-yr 3.95% @ E-Loan
• 2-yrs 4.10% @ GMAC Bank
• 3-yrs 4.25% @ E-Loan
  
• 5-yrs 4.81% @ Discover Bank and
  4.75% @ Capital One Bank & Wachovia Bank
  
• 7-yrs 4.60% @ PenFed CU
  
  
• Vanguard Money Market Rates: Prime=2.25%; Tax Free=1.84%

My Returns 1/1/1999 through 05/31/08

My "70:30 Explore Portfolio" was up 198.7% or 12.3% compound annual return.

• $100,000 invested 1/1/99 became $298,674
• Subscribe TODAY and get the June 2008 issue for FREE!

My "50:50 Conservative Core Portfolio" was up 72.5% or 6.0% compound annual return.

• $100,000 invested 1/1/99 became $172,470

My "80:20 Aggressive Core Portfolio" was up 72.3% or 5.9% compound annual return.

• $100,000 invested 1/1/99 became $172,261

VFINX (S&P500) was up 31.7% or 3.0% compound annual return.

• $100,000 invested 1/1/99 became $131,745

Vanguard's Money Market Fund was up 38.8% or 3.5% compound annual return.

• $100,000 invested 1/1/99 became $138,784

To find out how I've profited greatly from these difficult market conditions over the past decade, subscribe to "Kirk Lindstrom's Investment Newsletter" today!