Now What: A Guide to Retirement During Volatile Times

Is a compromise in the works for the Fiscal Cliff?


Markets appeared to be in a holding pattern last week as traders await a fiscal cliff deal. Equities finished the week slightly in the red, pushed down by fresh concerns that lawmakers may not reach a deal this year. For the week, the S&P slid 0.32%, the Nasdaq trimmed 0.23%, and the Dow slipped 0.15%.

Despite ongoing talks, no fiscal cliff resolution is imminent. While Congress had expected to recess last Friday, lawmakers are delaying their holiday break to see the process through and may stay until Christmas, if necessary. In a new twist, sources close to the talks say that House Speaker John Boehner has offered up tax increases on incomes above $1 million as part of a deficit reduction deal to move negotiations forward. In exchange, Republicans want tax cuts extended for all incomes under that amount, as well as spending cuts to entitlement programs. While we don’t know if a deal is around the corner, this shift toward compromise on both sides is an important breakthrough.

Last week, the Fed made a huge, game-changing step towards adopting a more aggressive, expectations based monetary policy. On Wednesday, the FOMC announced QE4, promising to buy $45 billion in longer-term Treasuries on top of its monthly purchase of $40 billion in mortgage-backed securities. In an unprecedented move, the Fed also announced that it will keep interest rates low until unemployment falls to at least 6.5%, as long as inflation remains below 2.5%.

Tying monetary policy to specific guideposts is a fundamental shift in the way the Fed does business and moves it much closer to fiscal policy. We have hopes that this bold move will entice business leaders to move some of their cash stockpiles off of the sidelines and into the markets, giving the economy a much-needed boost. At the same time though, we’re concerned about how the Fed will ever be able to disengage (by selling off bonds) from this massive purchasing program without sending markets into a decline. Only time will tell the whole story. Next week analysts will be watching the release of GDP and unemployment numbers and waiting hopefully for more news from Washington.

On a final note, we feel compelled to acknowledge the tragic loss faced by the families of Newtown, Connecticut. Our hearts go out to the community who unjustly lost 26 precious lives. Though words cannot express the pain they are facing, may we at least be reminded how important it is to cherish our friends and family members with every moment we have.

NOTE: This will be our final commentary of 2012. Our next edition will be an annual recap sent on Tuesday, January 3rd. We urge you to take a break from the hustle and bustle of financial and political news to enjoy some undistracted time with your family and friends during the final weeks of this year, as we will also be doing.

ECONOMIC CALENDAR:

Monday: Empire State Mfg. Survey, Treasury International Capital

Tuesday: Housing Market Index

Wednesday: Housing Starts, EIA Petroleum Status Report

Thursday: GDP, Jobless Claims, Existing Home Sales, Philadelphia Fed Survey

Friday: Durable Goods Orders, Personal Income and Outlays, Consumer Sentiment

means not available.

HEADLINES:

China promises to maintain prudent monetary policy in 2013. China’s new Communist Party leaders reiterated their intention to closely monitor the country’s still-fragile economy in case more policy easing is required. Although China’s economy is recovering, weaker-than-expected November data indicates it’s not out of the woods yet.

U.S. factory output jumps in November. Manufacturing rebounded from Superstorm Sandy by posting its largest monthly increase – 1.1% - in a year. Strong auto production largely drove the gain, reigniting hope for the domestic economic recovery.

Holiday retail shopping takes off. Despite worries about the effects of Superstorm Sandy and the fiscal cliff, retail sales rose 0.3% between October and November, driven by lower gas prices and a steady job market. However, with a decline in consumer confidence, retailers are still concerned that fiscal cliff worries may dampen December sales.

Survey of economists/analysts says fiscal cliff is at top of worries. Over 35% of respondents to the CNBC survey say that the fiscal cliff is the biggest threat to the economic recovery. Although 41% believe that lawmakers will fail to reach a compromise in 2012, over 40% of respondents believe the issue will be resolved within the first weeks of 2013.



QUOTE OF THE WEEK:

‘We grieve for the families of those we lost. And we keep in our prayers the parents of those who survived’ President Obama





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Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Diversification does not guarantee profit nor is it guaranteed to protect assets



The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The Pending Home Sales Index, a leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops. The PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years. The results are weighted to produce the index.

The Chicago Board Options Exchange Market Volatility Index (VIX) is a weighted measure of the implied S&P 500 volatility. VIX is quoted in percentage points and translates, roughly, to the expected movement in the S&P 500 index over the upcoming 30-day period, which is then annualized.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.



By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.



Will Lawmakers push investor’s over a cliff?


The combination of unease in Europe and political bickering in Congress set equity markets on edge last week. In spite of the turbulence, key indices still managed to close positive for the week, with the S&P 500 gaining 0.5%, the Dow gaining 0.12%, and the Nasdaq gaining 1.5%.

Markets slid Friday after comments by House Speaker John Boehner indicate that fiscal cliff talks have stalled. While the Democrats are seeking $1.6 trillion in tax increases (aimed largely at wealthy taxpayers), as well as $50 billion in additional stimulus spending, Republicans are focused on reducing the deficit through closing tax loopholes and reducing entitlement programs. Since these are essentially the same issues that have been argued over the last year, it seems as though lawmakers are more interested in theatrics than in resolving the issue before the end of the year.

A Greek aid deal was finally reached Tuesday as European ministers convinced a skeptical International Monetary Fund (IMF) that their formula for getting Greece back on track had good odds of success. The deal will cut Greek interest rates and give the ailing nation additional time to pay back rescue loans while giving it a 34.4 billion-euro loan installment in December. As part of the agreement, Greece’s debt-to-GDP ratio is expected to decline from 190% in 2014 to 124% in 2020. We hope – rather than expect – that Greece will be able to meet the terms of its new deal. Markets appeared to share our skepticism and did not show much reaction to the news.

Next week will see the release of some key economic data, including November jobless claims, which we expect to come in lower as the effects of Superstorm Sandy continue to fade. Although Sandy hit in the latter days of October, the Labor department conducts its payroll survey on the 12th of each month, meaning that November data will capture the effects of the storm. We’ll also be able to take a peek at the preliminary consumer sentiment report, which analysts will pore over to get a sense of what holiday retail numbers might look like. We’ll keep you posted. Have a great week!

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HEADLINES:

Chinese manufacturing expands in November. In a further sign that China may have turned the corner, the country’s official manufacturing index rose to the highest level in seven months. Economists believe that the country may experience additional growth in December due to Christmas.

European rescue funds downgraded. Moody’s Investors Service downgraded the Eurozone funds responsible for bailing out periphery nations to Aa1 from Aaa. The move was prompted by concerns about the high correlation in credit risk between the rescue funds and the countries funding them.

Investors flock to Treasuries. Despite the risks posed by the fiscal cliff, investors can’t get enough U.S. Treasuries. Reversing a 6-month trend, Treasury purchases topped corporate bonds as investors piled on, seeking asset protection rather than investment growth.

Corporations rush to issue debt in 2012. Record-low rates and potential tax law changes are driving a gusher of new corporate debt. The amount of investment-grade and high yield bonds issued this year is already at a record $1.2 trillion and is likely to increase before the new year when applicable tax laws may change.



QUOTE OF THE WEEK:

" You're happiest while you're making the greatest contribution.” - Robert F. Kennedy


Share the Wealth of Knowledge!

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Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Diversification does not guarantee profit nor is it guaranteed to protect assets



The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The Pending Home Sales Index, a leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops. The PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years. The results are weighted to produce the index.

The Chicago Board Options Exchange Market Volatility Index (VIX) is a weighted measure of the implied S&P 500 volatility. VIX is quoted in percentage points and translates, roughly, to the expected movement in the S&P 500 index over the upcoming 30-day period, which is then annualized.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

.



By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.




How will ‘Black Friday’ results impact the economy?

Equities ended the abbreviated week on a bullish note – with the S&P 500 having its second best week of the year – boosted by positive retail sales estimates and upbeat economic reports out of Europe. For the week, the S&P 500 gained 3.62%, the Dow gained 3.73%, and the Nasdaq gained 3.99%, erasing some of the losses we saw in previous weeks.

Although the holiday shopping season is just beginning, early information suggests retailers can expect a good showing this year. A recent consumer survey by Deloitte suggested that shoppers would spend an average of $286 over the holiday weekend, which is a 28% increase over a similar survey last year. Additionally, the National Retail Federation forecasts holiday sales to grow 4.1% over last year. This is good news for retailers, who expect to make between 40-50% of their profits during the holiday shopping season.

Hoping to goose the start of the shopping season, some retailers began offering Black Friday deals on Thanksgiving Day. Interestingly, the promotional push may have stolen sales from Black Friday itself. However, if Thursday’s numbers are added to Black Friday, stores still saw a total increase in sales of almost 1% over 2011, and store visits increased 3.5%, indicating that consumers are feeling confident and want to spend money.

The fiscal cliff is still very much on everyone’s minds, and despite reassuring jawboning by lawmakers, we don’t know how likely it is that we will see a resolution by Christmas. Federal Reserve Chairman Ben Bernanke fanned the flames during a speech last week by commenting that if a resolution is not reached, the U.S. economy will slide into recession. If that were allowed to happen, he does not believe that the Fed has the tools needed to help and that the economy would be on its own. While this isn’t a happy thought, it’s clear that Bernanke is using his bully pulpit to push lawmakers into action. His message is clear: “Make it happen, or you’re on your own.”

Monday of this week is widely known as “Cyber Monday,” the largest online shopping day of the year. As workers return to their desks after the long holiday weekend, many are still in shopping mode, and retailers offer online specials to lure them away from brick and mortar stores. It will be interesting to see if Cyber Monday numbers are as encouraging as Black Friday’s. Also this week, analysts will be turning their attention to the state of economic reports being released, including GDP, employment data, and consumer confidence.

ECONOMIC CALENDAR:

Monday: Dallas Fed Mfg Survey

Tuesday: Durable Goods Orders, Ben Bernanke Speaks at 8:30 AM ET, S&P Case-Shiller HPI, Consumer Confidence

Wednesday: New Home Sales, EIA Petroleum Status Report, Beige Book

Thursday: GDP, Jobless Claims, Pending Home Sales Index

Friday: Personal Income and Outlays, Chicago PMI


HEADLINES:

iPad and iPhone dominate Black Friday online shopping. IBM found that 24% of online shoppers used mobile devices, compared to 14.3% in 2011. The iPad was used by 88.3% of tablet shoppers.

Greece closer to aid deal. After several days of bargaining and politicking, Europe’s leaders are moving closer to a new bailout deal for Greece. The IMF has agreed to relax its debt-cutting targets for Greece, meaning the country may not be forced to adopt additional austerity measures.

Chinese manufacturing numbers are up. After seven consecutive months of slowing, an important manufacturing index is up as factory orders pick up. Since manufacturing forms a large part of the Chinese economy, this could indicate that the world’s second-largest economy might be recovering from its slump.

Oil prices surge on Israel tensions. Oil prices rose above $88 a barrel, on increased tensions in the Middle East. A brewing fight between Israeli forces and Gaza separatists is causing supply worries, pushing up the price.



QUOTE OF THE WEEK:

“ Abundance is about looking at life and knowing that you have everything you need for complete happiness, and then being able to celebrate each and every moment on Earth." – Dr. Wayne Dyer

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Share the Wealth of Knowledge!

Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!





If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Diversification does not guarantee profit nor is it guaranteed to protect assets



The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The Pending Home Sales Index, a leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops. The PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years. The results are weighted to produce the index.

The Chicago Board Options Exchange Market Volatility Index (VIX) is a weighted measure of the implied S&P 500 volatility. VIX is quoted in percentage points and translates, roughly, to the expected movement in the S&P 500 index over the upcoming 30-day period, which is then annualized.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

.



By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.







Investor’s can be thankful

by ken | 09:27 in |

Investor’s can be thankful


Click on the link below to view Ken’s comments on the Fiscal Cliff, which appeared in the national newspaper, Investors Business Daily

http://news.investors.com/investing-etfs/111612-633764-fiscal-cliff-too-late-to-sell-stocks.htm


As you gather with your family and friends this week, we urge you not to let anxiety over the fiscal cliff or sovereign debt problems in Europe distract you from what matters most. Turn off CNBC and close the Wall Street Journal for a few days. Use the opportunity to recharge your batteries. There’ll be plenty of time to watch the news later. To help you with this, we thought it would be nice to share a few positive things worth being thankful for.

Progress towards a fiscal compromise: The latest word is that the White House and Congress have committed to short negotiations, with the goal of achieving a fiscal cliff resolution before the New Year. This is welcome news and we hope we’ll begin to see business leaders opening their wallets and making big investments in hiring and growth soon. Markets slid during the early part of last week, but rallied Friday on this news.

Resilient markets: Despite what we’ve been through in the past few years, U.S. markets are still performing well – the Dow is still up 3% for the year and 3.5% since last year, when economists worried that we might be facing a double-dip recession. With consumer sentiment running high and investors feeling renewed confidence in Congress, we may still see additional upside this year.

A recovering economy: Our economy has suffered some serious pain in the last few years, but is still chugging along. Currently, we have a housing market that is bouncing back vigorously, a decreasing unemployment rate, and recovering industrial output. Our economy still has a long way to go before it can be considered fully recovered, but trends are pointing to continued improvement next year if we can get past the fiscal cliff.

Looking ahead, despite the holiday-shortened trading week, markets could still see some action. Housing data will be released Monday, and Ben Bernanke is scheduled to speak Tuesday (analysts expect his remarks to address the economic recovery and tight consumer credit markets). The day after Thanksgiving, Black Friday will mark the start of the holiday shopping season and traders may have time to react to any early revenue announcements. European analysts expect the next round of Eurozone aid to Greece to be announced this week, so we may see some movement in currency and European markets too.


HEADLINES:

Superstorm Sandy depresses industrial output. U.S. industrial manufacturing output fell in October as Sandy disrupted production and transportation across the Northeast. The storm is estimated to have reduced output by 1%; however, the underlying tone of production remains consistent with estimates.

Next round of Greek aid expected this week. According to remarks by Italian officials, Eurozone leaders will reach a compromise with Greece within days. Greece has already been granted an additional two years to reach austerity goals and European leaders will meet to discuss funding requirements for the next tranche of aid money.

Business inventories rise in September due to high stocks of automobiles. Excluding the automobile stocks, inventories were flat for a second month, meaning that economists may have to lower third-quarter GDP estimates. Business inventories form a key part of GDP estimates.

China’s biggest future threat is inflation. According to a Chinese central bank governor, the biggest risk to China’s transition from a planned economy to a market-based one is inflation. Without careful management by central bankers and deep financial reforms, overspending by local and regional governments could overheat the economy.



QUOTE OF THE WEEK:

As we express our gratitude, we must never forget that the highest appreciation is not to utter words, but to live by them”

John Fitzgerald Kennedy







Share the Wealth of Knowledge!

Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!





If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.





Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Diversification does not guarantee profit nor is it guaranteed to protect assets



The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The Pending Home Sales Index, a leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops. The PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years. The results are weighted to produce the index.

The Chicago Board Options Exchange Market Volatility Index (VIX) is a weighted measure of the implied S&P 500 volatility. VIX is quoted in percentage points and translates, roughly, to the expected movement in the S&P 500 index over the upcoming 30-day period, which is then annualized.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.



By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.









Will the markets go over a ‘Fiscal Cliff’?

The big question last week was: What next? Markets slid as investors reacted to fears about post-election economic policy and renewed turbulence in Europe. Stocks logged their worst week since June, with the S&P losing 2.64%, the Dow sliding 2.12% and the Nasdaq falling 3.16%.

The world tuned in on Tuesday to watch the end of a hotly contested U.S. national election. For those who missed it, President Obama won a second term in office. In Congress, Democrats won a majority in the Senate while Republicans maintained control of the House. Markets started the selloff first-thing on Wednesday as traders responded to concerns about the global economy, driving the S&P 500 down by 2.4%. Bonds experienced a dramatic swing as well, as worried investors were driven towards the perceived safety of government securities.

Now that the election is over, analysts and media pundits are turning their attention to the issue that’s been hanging over us for months: the fiscal cliff. The fiscal cliff will likely dominate headlines until an agreement is reached, meaning that we can expect markets to remain volatile. A split Congress will make it difficult for Democrats and Republicans to reach a compromise. Deep divisions between the parties remain, and the debate may continue through the New Year; though we really hope it doesn’t.

President Obama jumped right into the debate last Friday and staked out the Democratic negotiating position by announcing that any agreement must include tax increases on the wealthy. Since this is a major sticking point for Republicans, it is unlikely that a compromise will be reached soon. If Republicans do not give ground on the issue, Democrats may allow the Bush Tax Cuts to expire in order to gain bargaining power for their own ‘middle-income tax relief’ plan in the New Year.

A more desirable scenario would bring Republicans to the negotiating table for a bi-partisan plan to gradually phase in austerity measures instead of going over the cliff – similar to the 2010 Simpson-Bowles plan. This would set the stage for meaningful tax and budget reform over the next few years and reassure deficit-watchers that the U.S. is managing its debt. The crux of the matter is that while the U.S. needs to get its deficit spending under control (lest we end up like Europe), our still-fragile economy cannot withstand large-scale tax increases and government spending cutbacks.

In short, now that election season is over, lawmakers are faced with major challenges, and we fear that they are more interested in partisan bickering than hammering out a compromise. On the bright side, we see the potential for markets to respond positively when an agreement is finally made. If economic reports remain upbeat, we could see further upside in the near future. As always, we encourage you to remain patient and focused on your long-term financial strategy.

ECONOMIC CALENDAR:

Monday: Veterans Day, Stock Markets Open, Bond Markets & Banks Closed

Tuesday: Treasury Budget

Wednesday: Producer Price Index, Retail Sales, Business Inventories, FOMC Minutes

Thursday: Consumer Price Index, Jobless Claims, Empire State Mfg. Survey, Philadelphia Fed Survey, EIA Petroleum Status Report

Friday: Treasury International Capital, Industrial Production



HEADLINES:

China’s economy may be turning the corner. The head of China’s central economic planning agency claimed that China would meet its 7.5% GDP growth target in 2013. Data on Saturday showed that China’s exports jumped significantly, surpassing expectations and lending credence to the claim.

U.S. Q3 growth higher than previously thought. According to analysts, U.S. third-quarter growth estimates may be revised upwards due to economic data that was not originally included. Recent reports of higher wholesale business inventories and an increase in U.S. exports may indicate that the economy is doing better than expected.

Oil rises above $86 per barrel. Higher projected U.S. economic growth led to a spike in oil prices as producers prepare for higher demand for petroleum products. Gasoline futures also rose on fears of distribution problems and tight supplies in Hurricane Sandy-affected areas.

Greece is running out of cash. Greek’s downward spiral continues as its cash reserves are depleted and its coalition government struggles for survival. Although Greece has missed every key austerity milestone, it will likely receive further bailout funds since it is in the interest of other Eurozone nations to keep the country running (for now).



QUOTE OF THE WEEK:

“If you cannot do great things, do small things in a great way.” — Napoleon Hill





Share the Wealth of Knowledge!

Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!





If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Diversification does not guarantee profit nor is it guaranteed to protect assets



The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The Pending Home Sales Index, a leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops. The PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years. The results are weighted to produce the index.

The Chicago Board Options Exchange Market Volatility Index (VIX) is a weighted measure of the implied S&P 500 volatility. VIX is quoted in percentage points and translates, roughly, to the expected movement in the S&P 500 index over the upcoming 30-day period, which is then annualized.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

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Hurricane Sandy’s impact on our economy


It was a busy week as Hurricane Sandy pounded the East Coast; securities exchanges were forced to close on Monday and Tuesday; and a slew of economic reports were released. Stocks ended the shortened week with a selloff Friday, erasing gains made earlier, and finishing basically flat. For the week, the S&P gained 0.16% and the Dow climbed 0.12%, while the Nasdaq trimmed 0.19%.

Although the economic impact of Hurricane Sandy won’t be known for weeks or months, the true cost of a disaster like this is always the human suffering. It is painful to see beautiful homes and townships devastated by natural forces, and our thoughts go out to all those impacted. If you or someone you love has been affected in any way, and if there is anything we can do, please don’t hesitate to let us know.

On the bright side – without making light of this disaster – it should be noted that major storms rarely have a lasting impact on the U.S. economy. Generally, even large disasters like this one aren’t costly enough to damage the enormous economic machine that is the U.S. economy. Insurance companies may be stuck footing a large bill, and the government may have to pay for relief efforts, but economic snags of this type are usually temporary. The major exception to this general rule was Katrina, which devastated New Orleans and caused over $100 billion in estimated damages. One of the major reasons Katrina was so expensive was because of the area’s economic importance as a major shipping port and oil and gas hub. Although the effects of Sandy are widespread, the storm would have had to shut down major cities for weeks to achieve similar effects. Fortunately, it passed somewhat quickly, and major recovery efforts are underway.

One note of positive news could be found in last week’s Labor Department report showing that employers added 171,000 new jobs last month. Although the unemployment rate ticked slightly upwards to 7.9%, the increase was attributed to discouraged workers restarting job searches, which is a positive sign for the economy. This good news combined with recent consumer confidence highs indicate that we may be able to expect consumer spending to increase during the holiday season, which would be excellent for retailers.

As earnings season continued last week, markets responded positively to some solid results. Consumer discretionary stocks edged higher as several well known travel companies and luxury retailers beat estimates. Overall, the corporate earnings picture has improved as more companies have reported; according to November 2nd data, of the 378 S&P 500 companies that have reported so far, 61.9% have beat expectations, which is in line with the 62% average since 1994. While we may see additional volatility in the weeks ahead, solid earnings and upbeat economic reports mean that investors have a lot to be pleased about right now.

ECONOMIC CALENDAR:

Monday: ISM Non-Mfg. Index

Wednesday: EIA Petroleum Status Report

Thursday: International Trade, Jobless Claims

Friday: Import and Export Prices, Consumer Sentiment.

HEADLINES:

Euro crisis strikes Greek hospitals. German drug maker Merck KGaA has stopped delivering a critical cancer drug to Greek hospitals due to unpaid bills. Although Greeks can still buy the popular prescription drug in pharmacies, until public hospitals are able to pay down their debts, the drug will not be available to hospital patients.

Consumer confidence rises to four-year high. The Conference Board Consumer Confidence index rose in October to the highest level since February 2008. Despite tough economic conditions, Americans were more confident about their finances and expected the job market to improve in the next six months.

Planned layoffs jump to five-month high. The number of planned employee layoffs by U.S. firms jumped 41.1% to the highest level since May. While the last three months of the year historically see the largest number of layoffs, analysts believe that the deteriorating situation in Europe and worries about the fiscal cliff are leading companies to cut back on staffing.

Long-term shifts in retail may hinder employment growth. The retail sector is a key provider of employment. As consumer confidence grows, and mortgage refinances put money back in consumers’ pockets, retailers are beginning to increase hiring. However, structural shifts towards self-checkout and online sales may limit the pace of hiring increases.



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Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Diversification does not guarantee profit nor is it guaranteed to protect assets



The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The Pending Home Sales Index, a leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops. The PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years. The results are weighted to produce the index.

The Chicago Board Options Exchange Market Volatility Index (VIX) is a weighted measure of the implied S&P 500 volatility. VIX is quoted in percentage points and translates, roughly, to the expected movement in the S&P 500 index over the upcoming 30-day period, which is then annualized.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.



By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.





Can the market go higher with lower earnings forecasts?

Markets declined for most of the week on disappointing third quarter earnings reports, with the technology sector hardest hit. On Friday, the 25th anniversary of 1987’s stock market crash (known as Black Monday) , trading was mostly downbeat as investors digested a string of disappointing earnings reports. In spite of this, markets staged a brief comeback in the last hours of trading to close mixed. For the week, the S&P gained 0.32%, the Dow gained 0.11%, and the Nasdaq fell 1.26%.


Overall this earnings season, Q3 profits have managed to come in just a shade over the doom and gloom estimates. However, the bad news is that top line revenue is much worse than forecasted. One of the big disappointments this week was Google (GOOG), which missed its revenue forecasts for the first time because of its struggling Motorola division and drove a tech selloff on Friday. Market stalwarts GE (GE) and McDonald’s (MCD) also turned in downbeat reports, pushing shares of both companies lower. With about one-third of S&P 500 companies reporting in, a solid 65% have beaten profit estimates, while just 42% have managed to beat revenue forecasts. This repeats the performance we saw in the second quarter, which shows that companies are learning to do more with less while dealing with challenging business conditions.

Not all the earnings news is grim though; banks and consumer discretionary companies such as luxury stores and hotels are expected to report the best growth. Banks were given a boost by Fed actions, and, despite the tough economy, luxury retailers and hotel chains are doing well as wealthy consumers continue to spend.

Next week, analysts will turn their attention to two big economic reports on Friday – the GDP report and consumer sentiment. With remaining earnings reports likely to show more of the same, investors will be looking at the GDP report to see whether the Fed’s QE3 activities are giving the economy the boost it needs. Although we can hope for some solid economic performance, there is a good chance the rest of October will be turbulent for markets.

HEADLINES:

Unemployment rate falls in 41 states in September. According to the Bureau of Labor Statistics, the U.S. saw a sharp drop in the unemployment rate in all but 9 states last month. South Carolina posted the largest improvement, with its unemployment rate falling from 9.6% to 9.1%.

Home resales fall in September. Sales of existing homes retreated from a two-year high last month, reminding us that the housing market is a long way from a full recovery. Resales fell 1.7%, pushed lower by tight inventory and a slowdown in distressed sales.

Mortgage processing delays may undermine QE3. To meet surging demand for mortgages after the Fed’s QE3 housing boost, banks are hiring new mortgage processors. However, they are still struggling to process applications, leading to delays for beleaguered mortgage applicants.

European bank shares fall on new discord. Shares of European banks fell last week as EU nations bickered over how to help debt-ridden Spain and Greece. While some analysts believe this is a blip, others believe that markets could fall further if permanent solutions are not found.

QUOTE OF THE WEEK:

“Be a student by staying open and willing to learn from everyone and anyone”- Dr. Wayne Dyer


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Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Diversification does not guarantee profit nor is it guaranteed to protect assets



The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The Pending Home Sales Index, a leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops. The PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years. The results are weighted to produce the index.

The Chicago Board Options Exchange Market Volatility Index (VIX) is a weighted measure of the implied S&P 500 volatility. VIX is quoted in percentage points and translates, roughly, to the expected movement in the S&P 500 index over the upcoming 30-day period, which is then annualized.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.



By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.







Is the glass half full or half empty for US Markets?


Markets declined last week, retreating after initial third quarter earnings reports showed weakness and the World Bank cut its growth estimates in Asia. While the major indexes rallied a bit on Thursday and Friday, overall, investors decided that they didn’t have much to get excited about. For the week, the S&P declined 2.21%, the Dow lost 2.07%, and the Nasdaq lost 2.94%.



While it is can be hard to see the big picture when markets slide, it’s important to keep short-term pull-backs in perspective. To help us do this, we can reflect on how far we’ve come since Tuesday’s five year anniversary of the October 9, 2007 peak. In the last five years, markets have overcome a great deal: a catastrophic mortgage meltdown, a plunge that erased 50% of the market’s value, and significant global uncertainty. Since the darkest days of the “great recession” we’ve made enormous strides towards recovery, and currently, the S&P is within a few percentage points of its 2007 peak. Furthermore, we have reasons to be optimistic about the future. While we could hope for more robust growth, economic indicators are showing that the economy is gradually recovering. Unemployment is decreasing, manufacturing is increasing, and consumers are feeling more confident.



We definitely have a long way to go before we can state with certainty that the global economy has recovered. And, as many analysts have stated, the next few months could be turbulent for equity markets. Factors such as the ongoing crisis in Europe, weak fundamentals in Asia, poor corporate earnings reports, the presidential election, and the fiscal cliff may create challenges that test your discipline to stay the course.



On the bright side though, the S&P 500 has gained 11.8% since June 1, indicating that investors are ready to respond to positive news and that there may still be some upside potential this year. In September, the U.S. economy gained 114,000 jobs, driving the unemployment rate down to 7.8%. The housing market is active, indicating that at least that corner of our economy is doing well. Although we cannot predict the future, these factors are very encouraging. We’ve certainly come a long way.



HEADLINES:

Eurozone seeking ways to cut Greek debt. Eurozone officials are seeking alternative ways to address Greece’s woes as recession and reform delays have put their original debt targets out of reach. After lending over 25 billion euros, central banks are reluctant to offer lower interest rates or purchase additional Greek debt.

China’s weak imports signal recovery is slow. China’s import growth recovered slightly in September but was still well below targets. Imports grew 2.4% in September, and exports, a major component of China’s GDP, grew by a robust 9.9%, despite continued weakness in the U.S. and Europe.

Mortgage lenders report record profits. In the latest sign that the housing market has turned the corner, the country’s largest mortgage lenders, Wells Fargo and JPMorgan Chase, reported that a surge in lending has resulted in record profits last quarter. Lower interest rates are promoting refinancing as well as mortgages for new homes.

U.S. producer prices rise in September. U.S. producer prices, a measure of inflation, rose 1.1% in September, following a 1.7% increase in August. The increase is due to rising energy costs. Though wholesales prices rose, core inflation remained steady, reducing concern about rising prices.



QUOTE OF THE WEEK:

"I am certain that after the dust of centuries has passed over our cities, we, too, will be remembered not for victories or defeats in battle or in politics, but for our contribution to the human spirit.”- John F. Kennedy





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If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.



Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Diversification does not guarantee profit nor is it guaranteed to protect assets



The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The Pending Home Sales Index, a leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops. The PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years. The results are weighted to produce the index.

The Chicago Board Options Exchange Market Volatility Index (VIX) is a weighted measure of the implied S&P 500 volatility. VIX is quoted in percentage points and translates, roughly, to the expected movement in the S&P 500 index over the upcoming 30-day period, which is then annualized.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.



By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.





Market review of the 3rd quarter, and a look ahead to the last qtr of 2012



Wall Street closed its best third quarter since 2010 after a wave of central bank actions across the globe (and expectations of future action) drove up equities in an unexpected summer rally. However, signs of weakness in the economy pushed markets down in the final week of September and may lead to further bearish sentiment. For the quarter, the S&P rose 5.76%, the Dow increased 4.32% and the Nasdaq rose 6.17%. Lets take a quick look back.

July: July was a volatile month for stocks. Markets were kicked around by domestic indicators and news surrounding the debt crisis in Europe. During the final weeks of July we saw the release of corporate earnings reports for many major companies. Across the board, most companies showed weak revenue, with less than half exceeding revenue expectations. Even so, a number of companies were still able to beat earnings expectations, meaning they are getting better at doing more with less.


August: August was the month of the summer sugar high rally as investors drove up stock prices on hopes that the Fed would undertake further quantitative easing. Retail sales in August beat expectations due to a strong back-to-school season, which could forecast robust holiday sales. These two shopping seasons are the most important for retailers, so a strong performance could lead to upbeat corporate earnings reports next quarter.


September: Several market-moving events took place last month; markets were dominated by expectations of major Federal Reserve stimulus action and hope that the European Central Bank would unveil a new plan. Despite the Fed’s historical reluctance to become involved in the election cycle, under the pressure of a disappointing August jobs report, the Fed finally launched the long-awaited additional quantitative easing. Under QE3, the Fed has made an open-ended commitment to buy mortgage-backed securities to the tune of $40 billion per month. The move is designed to lower long-term interest rates and spur more lending to businesses and consumers. In a similar move, the ECB launched a bold bond-buying program designed to reassure European investors and lower interest rates on Spanish and Italian bonds.


What’s Next: The first week of October will provide plenty of market-moving data, with the release of third-quarter reports on GDP, manufacturing, consumer sentiment, and more. We will also see the FOMC minutes from last week’s Fed meeting, which will provide more clarity into possible Fed moves this year. Earnings reports for Q3 will start trickling in during coming weeks, and although predictions indicate revenues and profits may be down across the board, we could get some surprises.


As we look ahead to the final quarter of the year, markets could decline from their summer peak or rise to new highs. The market rallies of the summer indicate that investors are poised to respond to positive news, and should the economy show further signs of recovery, we may see more bullish market behavior. With the election cycle nearing its conclusion, markets may also react to political uncertainty surrounding the fiscal cliff and other economic issues.

As an investor, it is wise to assess your own risk tolerance from time to time and make sure you are allocated suitably for your personal investment objectives.

HEADLINES:

Protests in Spain and Portugal threaten austerity measures. Thousands of demonstrators took to the streets in Madrid and Lisbon, protesting the deep tax increases, spending cuts, and high unemployment. Despite mounting tensions, politicians promise to hold the line.

Durable goods orders fell in August, but business investment remains up. A significant drop in orders for commercial aircraft drove down overall durable goods orders; however, the Commerce Department reports that core capital goods orders – an indicator of business confidence – rose 1.1% after two months of declines.

Consumer spending rose in August even though income barely increased. Consumers were forced to spend more at the pump as gas prices rose. This is concerning to analysts as it may rein in discretionary spending at the end of the year, affecting holiday retail sales.

Housing contracts fell in August. The number of signed contracts to purchase previously occupied houses fell 2.6% in August after hitting a two-year high in July. Unemployment, lack of income growth, and a strict credit market may make it tough for housing to regain its peak this year.



QUOTE OF THE WEEK:

"Happiness lies in the joy of achievement and the thrill of creative effort." – Franklin D. Roosevelt

Share the Wealth of Knowledge!

Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!





If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.



Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Diversification does not guarantee profit nor is it guaranteed to protect assets



The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The Pending Home Sales Index, a leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops. The PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years. The results are weighted to produce the index.

The Chicago Board Options Exchange Market Volatility Index (VIX) is a weighted measure of the implied S&P 500 volatility. VIX is quoted in percentage points and translates, roughly, to the expected movement in the S&P 500 index over the upcoming 30-day period, which is then annualized.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.



By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.





Will October be ‘spooky’ for stocks?


During the past three months, the stock market has turned in one of its strongest performances in U.S. history. Since early June, the Dow Jones Industrial Average has gained 12%. If this rate of increase continued, it would offer close to a 50% annualized gain. [1] But of course, such expectations are entirely unrealistic. While we are grateful for market gains when we can notch them, we must acknowledge that healthy markets move up and down.

In keeping with this behavior, markets closed slightly down last week as investors weighed promises by the Fed and other central banks against signs of economic hurdles and political challenges ahead. The S&P closed 0.38% lower, the Dow lost 0.1%, and the Nasdaq trimmed 0.13%. [2]



Federal Reserve officials made the rounds last week, giving speeches and expressing support for the Chairman’s efforts to stimulate the economy. Some comments lead analysts to believe that the Fed will act on its strong mandate and take further action if necessary; however, most believe it will leave policies unchanged until the end of the year. While investors cheered the recent aggressive Fed actions, some believe the move indicates the U.S. recovery is still uncertain at best. [3]



As we near the end of the third quarter, we will begin to see the first corporate earnings reports. Profit warnings from companies in the S&P 500 are outpacing positive pre-announcements by the largest margin in 11 years, indicating that businesses are still feeling the economic crunch. [4] Because companies have been cutting earnings estimates for months already, there is a possibility that weak earnings could trigger a decline in stock prices. Even so, equities could heat up in the first week of October due to market-moving events like the release of unemployment data, the presidential debate, and the Eurozone finance meeting.



As the elections near, politicians are ramping up the rhetoric, but still failing to deal with the fiscal cliff, a huge issue in the minds of analysts and investors. Although we wish that legislators would get their priorities straight and do their jobs, it is unlikely that any major resolution will be reached until after the elections. Should you have any questions about how the fiscal cliff or any other issue could affect your personal financial picture, please contact us. We are always happy to provide guidance.





ECONOMIC CALENDAR:

Monday: Dallas Fed Mfg. Survey

Tuesday: S&P Case-Shiller HPI, Consumer Confidence

Wednesday: New Home Sales, EIA Petroleum Status Report

Thursday: Durable Goods Orders, GDP, Jobless Claims, Pending Home Sales Index

Friday: Personal Income and Outlays, Chicago PMI, Consumer Sentiment



HEADLINES:

Homebuilders see strong third quarter. In a further sign that the housing sector may have turned the corner, U.S. homebuilder KB Homes, reported strong third quarter earnings. The company reports that it is experiencing rising orders for new homes as inventory drops and housing prices rise. [5]

Jobless claims rise in 26 states. Unemployment rates rose in 26 states in August, according to a Labor Department report, although most states still showed lower rates than a year ago. 42 states and the District of Columbia had lower rates last month than in August 2011. [6]

Oil prices near $93 per barrel. Oil prices rose higher Friday as traders weighed slowing economic growth and reduced demand for oil against potential supply disruptions in the Middle East. Higher energy prices as we head into the winter months could hit consumer spending hard. [7]

Concern grows about China’s hard landing. A raft of negative economic reports is raising concerns that China’s economy will not recover. A one-two punch of softening domestic and foreign demand is threatening the giant’s economic stability. A recent report shows that manufacturing grew only slightly in September and that foreign direct investment fell in August for the third month in a row. [8]





QUOTE OF THE WEEK:

“Be a student by staying open and willing to learn from everyone and anyone” Dr Wayne Dyer







Will QE3 be a ‘blessing’, or a ‘curse’ ?

Markets experienced a sharp rally last week as the Federal Reserve unleashed its long-expected quantitative easing. The major indices closed higher with The S&P gaining 1.94%, the Dow gaining 2.15%, and the Nasdaq picking up 1.52%.

Under the pressure of the previous week’s disappointing jobs report, the Fed finally let the genie out of the bottle. The report showed that the economy had added just 96,000 jobs in August, a number much lower than economists expected. This was enough to get the Fed to finally launch long-awaited additional quantitative easing. Under QE3, the Fed has made an open-ended commitment to buy mortgage-backed securities to the tune of $40 billion per month. The move is designed to lower long-term interest rates and spur more lending to businesses and consumers. The Fed said it also will “closely monitor” the economy and continue these purchases and possibly expand them until it sees substantial improvement in the outlook for the labor market. This open-ended commitment means that QE3 will last as long as the Fed wants it to and we cannot be sure when it will end.

The Fed’s recent action sends a signal to businesses and investors that it fully intends to use its powers in a major (and unusual) way to spur economic growth. That is a powerful statement to make in a time of economic uncertainty. QE3 is designed to convince businesses to invest in the future by assuring them that the Fed stands ready to do whatever is necessary.

On the negative side, our concern is that QE3 will simply add to the already enormous national deficit without dealing with the underlying causes of our current economic weakness. We are also skeptical that the Fed’s actions will convince banks to lend aggressively; rates are already at historic lows, but businesses and homeowners are still having trouble borrowing from gun-shy lenders. In short, QE3 is not a magic bullet that will solve our economic issues. In fact, it may actually add to our problems when the Fed is forced to unload all the bonds it has purchased – not just the QE3 bonds, but the $2 trillion in Treasury bonds it bought during QE1 and QE2 as well. Selling all that debt will drive up interest rates and may stall the recovery just when it has finally taken off.

So, what can we expect next? It’s clear that markets are jubilant about finally seeing what the Fed had in store. However, once investors get over their reaction high, if the economic numbers don’t show improvement, markets will likely retreat. Although we hope that businesses respond positively to the Fed’s move by increasing hiring and capital investment, we really want to see Congress pull itself together enough to address the fiscal cliff and tighten its purse-strings. If you have any questions about how QE3 or any economic issue will affect your portfolio, please feel free to call or e-mail us. We are delighted to be of service..

HEADLINES:

Consumer Sentiment Jumps in September. Consumer sentiment unexpectedly rose to its highest level in four months as Americans became more upbeat about their economic and job prospects. Although this could be a temporary bounce fueled by the recent presidential candidate conventions and the stock market rally, a significant increase could lead to increased consumer spending.

Credit card use drops for second month in July. Americans cut back on credit card use in June and July amid concerns about unemployment and slow economic growth. According to the Federal Reserve report, consumer debt declined even as overall consumer spending grew, indicating that consumers are paying with current income.

U.S. Credit Rating Cut by Egan-Jones. The ratings firm cut America’s credit rating to AA-, citing its opinion that QE3 would hurt the U.S. economy by increasing federal debt and devaluing the dollar, making important commodities expensive and widening the trade gap.

Gas prices push up inflation. A rise in gas prices pushed up inflation in August by the largest increase since 2009. Rising gasoline prices accounted for about 80% of the increase. Although other indicators show that inflation is contained, pressure at the pump could rein in consumer spending.


QUOTE OF THE WEEK:

"It’s never too late to be what you might have been." – George Eliot







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Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Diversification does not guarantee profit nor is it guaranteed to protect assets



The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The Pending Home Sales Index, a leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops. The PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years. The results are weighted to produce the index.

The Chicago Board Options Exchange Market Volatility Index (VIX) is a weighted measure of the implied S&P 500 volatility. VIX is quoted in percentage points and translates, roughly, to the expected movement in the S&P 500 index over the upcoming 30-day period, which is then annualized.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.



By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.







Bulls and Bears getting set to battle…

The major indices closed out last week in positive territory despite a disappointing jobs report as investors’ disappointment vied with renewed hope that the Fed could take action as early as next week’s FOMC meeting. The S&P gained 2.23%, the Dow gained 1.13%, and the Nasdaq closed up 2.26%.

In light of the sustained rally, we want to discuss some of the forces at work right now and take a look at both the bull and the bear case for coming weeks.

Headwinds could trigger a market decline:

The market run-up puts the S&P trading at 13.3 times forward earnings estimates, meaning that investors are paying just over $13 for each dollar of expected corporate earnings. Given the insipid corporate performance of the second quarter, and reduced expectations for the year, most analysts don’t believe that markets will move significantly higher. Weak economic fundamentals may be a drag on market movements as we get closer to the end of the year. Last week’s disappointing jobs report underscored just how far the economy still has to go before it can be considered healthy. Although the overall unemployment rate fell to 8.1%, that decline can be largely ascribed to discouraged Americans dropping out of the job search.

Chronic troubles in Europe and Asia may continue to dominate headlines and provoke concern among investors about possible contagion. National elections in the Netherlands and a German ruling on the legality of Europe’s major bailout fund could severely hamper efforts to knit Eurozone countries more closely together. Domestically, presidential elections have often produced a great deal of uncertainty in markets. With January’s fiscal cliff looming, investors will look to politicians to provide leadership, potentially creating market turbulence as the parties duke it out.

Tailwinds could push equities higher:

There are important events coming down the pike that could lengthen the rally such as additional quantitative easing by the Federal Reserve. This is the big payoff traders have been waiting for all summer, and one of the major factors in the rally. Quantitative easing is getting so much attention because monetary policy is pretty much the only game in town for improving the economy right now, given the political impasse in Congress. It’s hard to know when the Fed will implement further easing, although many expect it to happen this year.

Activity by foreign central banks in Europe and Asia could also give stocks a bump. Last week’s bond-buying announcement by the European Central Bank did a great deal to reassure investors that Eurozone bankers and politicians have the backbone to push through much-needed changes to fiscal and monetary policy. The plan is Europe’s most ambitious yet and will be able to buy unlimited amounts of government bonds to stabilize the debt of struggling countries.

In short, there are a great number of conflicting factors at play right now that could push equities higher or pull markets down. Regardless of how things move, we are committed to keeping you informed and to guiding you as you make investment decisions.


ECONOMIC CALENDAR:

Tuesday: International Trade

Wednesday: Import and Export Prices, EIA Petroleum Status Report

Thursday: Jobless Claims, Producer Price Index, FOMC Meeting Announcement, FOMC Forecasts, Treasury Budget, Chairman Press Conference

Friday: Consumer Price Index, Retail Sales, Industrial Production, Consumer Sentiment, Business Inventories

HEADLINES:

U.S. worker productivity grew in second quarter. Despite slower hiring, companies were able to get more from their workers this spring. Productivity, measured as the amount of output per hour, grew 2.2%, beating the consensus estimate of 1.6%. While this may have a positive effect on corporate earnings, it may mean companies will need to hire fewer workers.

U.S. economy loses global competitiveness. According to a recent World Economic Forum report, the U.S. economy has become less competitive, slipping two places to become the world’s 7th most-competitive economy, just behind Germany and the Netherlands. Economists cited concerns over fiscal health and macroeconomic stability as reasons for the decline.

China urges greater economic cooperation. While announcing a new government infrastructure fund designed to boost internal spending, Chinese president Hu Jintao expressed concern over the slowing global economy and urged greater cooperation between Asian-Pacific countries. Such an announcement could presage a move to coordinate further monetary policy easing.

Silver lining: Small businesses added 99,000 new jobs in August. Despite an overall disappointing jobs report, many sectors showed improvement in August. Small and medium-sized businesses added a combined total of 185,000 new jobs in August, compared with 16,000 jobs added by large companies. The service and construction sectors also added significant jobs, indicating that some areas of the economy are doing well.

QUOTE OF THE WEEK:

“It’s not the will to win that matters—everyone has that. It’s the will to prepare to win that matters.” – Paul "Bear" Bryant







Share the Wealth of Knowledge!

Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!





If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.



Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Diversification does not guarantee profit nor is it guaranteed to protect assets



The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The Pending Home Sales Index, a leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops. The PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years. The results are weighted to produce the index.

The Chicago Board Options Exchange Market Volatility Index (VIX) is a weighted measure of the implied S&P 500 volatility. VIX is quoted in percentage points and translates, roughly, to the expected movement in the S&P 500 index over the upcoming 30-day period, which is then annualized.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.







How might this September play out for stocks?


Markets stayed fairly flat last week ahead of Friday’s highly anticipated speech by Ben Bernanke but stumbled on news that the Fed wasn’t going to immediately roll out another round of quantitative easing. The S&P fell 0.32%, the Dow lost 0.51% and the Nasdaq lost 0.09% for the week.

Bernanke spoke during the Jackson Hole Economic Symposium, an annual meeting of elite economists and central bankers. His speech highlighted that the stagnant job market was of “grave concern” to central bankers and emphasized that the Fed remains ready to take action should economic conditions worsen. Although his language reiterated the Fed’s commitment to further quantitative easing, he stopped short of announcing the timing or structure of any further action. Many analysts don’t believe the Fed will make any major moves before November, preferring to remain apolitical during the hotly contested election. However, if next week’s jobs report disappoints, there is a chance that the FOMC could vote at its mid-September meeting to buy more Treasury bonds or government mortgage-backed securities to lower long-term interest rates and ignite economic activity.

Many analysts suspect the next round of quantitative easing (QE3) will arrive as a coordinated blitz between the Fed, European Central Bank, and other central banks around the world who hope to sort out the economic doldrums in one fell swoop. There’s been a lot of talk by central bankers at the Fed, ECB, People’s Bank of China, and the Bank of England about the need for further easing, and it makes sense for bankers to coordinate their actions to get the biggest bang for their buck. This wouldn’t be the first time central banks have worked together; the PCOB, ECB, and BOE lowered rates in tandem as recently as July 2012.

With a crucial ECB meeting this week and a ruling on the legality of Europe’s permanent rescue fund later this month, September is crunch time for the Eurozone. In order to satisfy markets, the ECB will have to announce very detailed and very aggressive plans to buy up Spanish debt. At this point, anything less would be a tacit affirmation that the Eurozone crisis is beyond central banker control.

Though September is notoriously the worst month of the year for stocks, a combination of important economic meetings and the remaining bullish exuberance of investors could mean this month won’t fit the mold. Despite the mild retreat last week, markets are still hovering close to highs not seen since 2007/2008, when markets reached their peak. Only time will tell what is ahead as traders assimilate additional economic reports and the Fed finally shows its hand.



ECONOMIC CALENDAR:

Monday: Markets closed for Labor Day holiday

Tuesday: Motor Vehicle Sales, ISM Mfg. Index, Construction Spending

Wednesday: Productivity and Costs

Thursday: ADP Employment Report, Jobless Claims, ISM Non-Mfg. Index, EIA Petroleum Status Report

Friday: Employment Situation

HEADLINES:

Retail sales jump on back-to-school shopping. August retail sales beat expectations with a 5.4% gain over last year’s numbers. Retailers are optimistic about the rest of the year as, historically, a strong back-to-school season foretells robust holiday shopping.

U.S. job recovery uneven across states. Although some states have recovered the majority of jobs lost during the recession, many states still face significant unemployment. While some states are expected to return to peak employment by 2013, 23 states may not fully recover until 2015.

Eurozone manufacturing sector declines. The Eurozone manufacturing sector retracted despite factory price cuts as demand stalled across the EU. Factories in Germany and France, Europe’s largest economies, saw activity fall for the sixth straight month. Since manufacturing is a core driver of European economies, weak demand will make it harder for the Eurozone to climb out of recession.

Fed Beige Book: Economy growing gradually. The Federal Reserve reported the economy grew moderately in July and early August, and hiring was stronger than in the previous six-week period. Strong auto and home sales, and tourism offset weakness in manufacturing.



QUOTE OF THE WEEK:

“Most people are searching for happiness outside themselves. That’s a fundamental mistake. Happiness is something you are, and it comes from the way you think.”

Dr. Wayne Dyer

Share the Wealth of Knowledge!

Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!





If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.



Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Diversification does not guarantee profit nor is it guaranteed to protect assets



The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The Pending Home Sales Index, a leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops. The PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years. The results are weighted to produce the index.

The Chicago Board Options Exchange Market Volatility Index (VIX) is a weighted measure of the implied S&P 500 volatility. VIX is quoted in percentage points and translates, roughly, to the expected movement in the S&P 500 index over the upcoming 30-day period, which is then annualized.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.



By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.







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