t was a rough one for the stock market last week as major indices closed out the ir worst

session of 2012 on the back of disappointing economic growth in China a nd renewed fears about debt-ridden Europe. The S&P fell 2% for the week, while t he Dow lost 1.61%, and the Nasdaq closed down 2.25%. China, the world s second-largest economy, reported first-quarter growth figures of 8.1%, the weakest rate in nearly three years, and below expectations of 8.3%. St ocks fell sharply on the news, stoking fears that a weakened Chinese economy cou ld have global implications.[1] Concerns surrounding Spain s debt offering next week renewed fears about the European debt crisis, battering bank stocks and draggin g down the euro against the dollar.[2] On the other hand, domestic indicators continue to provide a positive contrast t o global worries. The most recent Beige Book report released by the Federal Rese rve shows that the U.S. economy is improving at a modest to moderate pace as solid aut o sales, warm weather, and growth in high-tech manufacturing outweighed the effe ct of high gasoline prices.[3] Sales by U.S. wholesalers rose 1.2% in February, and they restocked their inventories at a faster rate in February than January, suggesting they expect a strong spring. Consumer confidence likewise grew in Feb ruary by the most in seven months. This is especially good news since consumer s pending drives nearly 70% of domestic economic activity; if consumers keep spend ing, the economy will continue to improve.[4] Domestically, the U.S. economy really seems to be chugging along, and indicators continue to support a broad recovery. Nevertheless, concerns about the fragile global economy will likely lead to continued volatility in equity markets. The d eclines experienced over the last two weeks are not difficult to comprehend in l ight of the outstanding first quarter performance we experienced. In the weeks a head, analysts will be examining quarterly earnings reports to determine whether the pullback has been exhausted, or if we should expect continued profit taking . As always, when short-term declines test your resolve, it is critically importan t to remain focused on your long term objectives and trust that the portfolio st rategy you have in place can weather a few squalls.