Now What: A Guide to Retirement During Volatile Times


Will Cyprus and Congress slow down the market? 

Markets finally snapped their winning streak on concerns of Eurozone trouble with Cyprus. Despite the early sell-off, markets rose later in the week to erase most of the losses. For the week, the S&P500 lost 0.24%, the Dow slid just 0.01%, and the Nasdaq trimmed 0.13%.[i]

Equities began the week with a broad sell-off amid news surrounding Cyprus, which desperately needed Eurozone bailout money to recapitalize its failing banks. The Cypriot parliament voted down the original proposal that would have taxed all bank accounts to raise additional funds, but was able to clinch a last-minute deal with international lenders that will recapitalize the country clinch a last-minute deal with international lenders %.r visions of the deal include shutting down Cyprus’ second-largest bank and raiding bank deposits over €100,000, which are not guaranteed under EU law, to raise an additional last-minute. While Cyprus was able to avert a disorderly default (and probable Euro exit), appropriating funds from uninsured depositors, including wealthy Russians, will have far-reaching consequences for Cyprus depositor senders %.r visions of the for foreigners.[ii]

On the home front, Congress finally ended the threat of government shutdown by approving a bill funding the government through the end of 2013. While sequestration cuts are still ongoing, the bill will ease some of the pain of mandatory cuts.[iii] On a related note, senators approved a non-binding $3.7 trillion 2014 budget agreement late last week during a marathon voting session that lasted until the early hours of Saturday morning. In stark contrast to the House budget, which slashed government spending, the Senate budget increased government spending while simultaneously increasing taxes on the wealthy. In some years, House and Senate budgets are reconciled, but that is not likely to happen this year due to the politically charged nature of the debate.[iv]

 

Regardless of what happens far away in a country like Cyprus, or here at home in the U.S., we'll continue to monitor events that have the potential to impact your investments, and will keep you informed. We hope you have a great week!

 

ECONOMIC CALENDAR:

Monday: Dallas Fed Mfg. Survey, Ben Bernanke Speaks 1:15 PM ET

Tuesday: Durable Goods Orders, S&P Case-Shiller HPI, New Home Sales, Consumer Confidence

Wednesday: Pending Home Sales Index, EIA Petroleum Status Report

Thursday: GDP, Jobless Claims, Chicago PMI

Friday: Personal Income and Outlays, Consumer Sentiment

 

HEADLINES:

Housing starts made a partial comeback after their drop in February. Even better, housing permits jumped, indicating that builders are ramping up production this year.[v] Sales of existing homes also grew slightly in February, and sales numbers for January were revised upwards, showing that the positive trend is holding across the industry. The supply of available housing also increased as higher prices are bringing more homes onto the market.[vi]

Manufacturing growth picks up in March. After solid February numbers, manufacturing growth and the pace of hiring increased in March, indicating that the sector is still contributing to economic growth.[vii]

Oil prices rose last week. Oil traders took advantage of early weakness in oil prices and got back in, causing oil prices to rise to $93.71. Domestic gasoline prices averaged  $3.69 across the country, 19 cents cheaper than the same period last year.[viii]

China faces more headwinds. Despite some recent gains in economic growth and domestic demand, China in, causing oil prices to rise to $93.71. Domestic gasoline prices avernancial system. One top official recommends broad reforms, including lessening state control to increase future economic growth.[ix]

 

QUOTE OF THE WEEK:

The only way of finding the limits of the possible is by going beyond them into the impossible. - Arthur C. Clarke

 

 

 

 

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FINRA/SIPC.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 assetsThe 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.

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.

, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer or Investment Advisor gives tax or legal advice. 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.

 

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[i] http://briefing.com/investor/markets/weekly-wrap/weekly-wrap-for-march-18-2013.htm
[ii] http://uk.reuters.com/article/2013/03/25/uk-eurozone-cyprus-idUKBRE92F07R20130325
[iii] http://www.cnn.com/2013/03/21/politics/congress-budget/index.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fcnn_allpolitics+%28RSS%3A+Politics%29
[iv] http://politicalticker.blogs.cnn.com/2013/03/22/senate-dives-into-budget-vote-a-rama/
[v] http://online.barrons.com/mdc/public/page/9_3063-economicCalendar.html
[vi] http://online.barrons.com/mdc/public/page/9_3063-economicCalendar.html
[vii] http://www.reuters.com/article/2013/03/21/us-usa-economy-pmi-markit-idUSBRE92K0JX20130321
[viii] http://news.yahoo.com/oil-rises-finishes-week-small-gain-204151198--finance.html
[ix] http://news.yahoo.com/china-vice-premier-says-economy-faces-headwinds-urges-044819713--business.html


Market at record levels, whats next?

 

Markets experienced another hot week as the Dow posted its best winning streak since 1996, with ten days up in a row, while the S&P 500 inched within 10 points of its historical high before closing lower on Friday.[i] For the week, the S&P 500 gained 0.61%, the Dow gained 0.81%, and the Nasdaq gained 0.14%.[ii]

 

Were disappointed to report that lawmakers dont appear to be making any headway on the sequestration front. President Obama met with House Republicans last week but made little progress in convincing them to accept tax increases as part of a deficit reduction plan. With criticism flying from both sides, it seems that they are still too far apart to hope for a deal.[iii]

 

On a more positive note, the number of Americans filing new unemployment claims fell for the third straight week, indicating that the labor market is recovering steadily. Initial claims dropped by 10,000 claims, handily beating expectations of a rise in claims. Even better, the four-week moving average for new claims, widely considered a less volatile measure, fell to a new five-year low, suggesting that underlying labor market trends are improving.[iv]

 

A surge in energy costs led to an increase in the Consumer Price Index, a broadly used measure of inflation. The CPI increased by 0.7% in February after remaining flat in January. However, excluding volatile food and energy prices, the more stable core prices increased just 0.2%, which was in line with expectations.[v]

 

Historically, markets have often pulled back after reaching historic highs. While we believe that general economic trends are heading in the right direction, in the short term, we won't be surprised by some market consolidation as traders take profits and plan their next moves. We always maintain focus on long-term financial movements and use these short-term dips and rallies to build new positions and find opportunities.

 

ECONOMIC CALENDAR:

Wednesday: Retail Sales, Import and Export Prices, Business Inventories, EIA Petroleum Status Report, Treasury Budget

Thursday: Jobless Claims, Producer Price Index

Friday: Consumer Price Index, Empire State Mfg. Survey, Treasury International Capital, Industrial Production, Consumer Sentiment

 

 

 

 Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized. Sources: Yahoo! Finance and Treasury.gov. International performance is represented by the MSCI EAFE Index. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.

 

HEADLINES:

Consumer sentiment tumbles on sequestration frustration. The Michigan/Reuters Consumer sentiment gauge fell to its lowest level in a year as Americans lost patience with the government and felt less optimistic about economic growth.[vi]

U.S. manufacturing output surges in February. After falling in January, factory production grew 0.8% last month. The increase combined with a big rise in utilities output to lead overall industrial production to increase 0.7%.[vii]

Oil prices rise ahead of Presidents Mid-East trip. Oil prices rose Friday amid concerns about renewed tensions ahead of President Obamas trip to Israel next week. Higher oil prices could affect manufacturing output and other aspects of the economy.[viii]

U.S. and E.U. negotiating new trade deal. A new trade deal, hoped to be signed by the end of 2014, will negotiate new trading rules and harmonize regulations in certain key areas. The new rules will increase access for businesses on both sides and is expected to add 0.5% to the E.U. economy and 0.4% to the U.S. economy.[ix]

 

QUOTE OF THE WEEK:

Commit to thinking about what you want, rather than how impossible or difficult a dream may seem 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.

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.