How will budget talks affect your tax rate?
Do you want to pay higher taxes? I know I don’t! But if you happen to be among the fortunate few that earn more than $250,000 a year, new polls suggest your neighbors want you to pay up.
According to the latest New York Times/CBS News poll, 72% of adults approve of increasing federal taxes on households making more than $250,000 starting in 2013. At the same time, a separate poll from ABC News and the Washington Post showed that 72% of respondents want to raise taxes on the rich to help reduce the federal deficit. The desire to see America’s wealthiest citizens paying higher taxes even spans political boundaries, with 55% of Republicans, 74% of independents and 83% of Democrats all calling for an increase.
So will increasing taxes on the rich fix the budget? This is not a question we will even try to answer in this brief commentary. It is worth noting however, that less than 3% of all American households earn more than $250,000 per year, and as it stands today, the U.S. tax system is already highly disproportionate. The top 1% of income earners pay 40% of all federal income taxes, the bottom 50% pay only 3%, and more than one-third of U.S. earners pay no federal income tax at all.
As new data from the Congressional Budget Office shows, raising all six income tax rates by 1 percentage point would yield an additional $480 billion over 10 years, while raising the top two rates by 1 percentage point would yield only $115 billion. So what is better: Increasing taxes a little bit for everyone or a lot for just a few? Perhaps another question to ask is whether America has a spending problem or a revenue problem? Again, these are not questions we can answer in this forum.
The point of sharing this information with you is not to fuel a political debate. The nation is already sharply divided on this issue. The reason we draw your attention to this matter is because directly or indirectly, it affects every American. And, at the rate things are going, there is a good chance we will see higher taxes in the future. Taking into consideration how taxes can affect your investments, both now and in the future, is an important element to preparing sound financial strategies. As always, we will monitor how the landscape changes and do our best to help you adapt to changing conditions.
ECONOMIC CALENDAR: Tuesday – S&P Case-Shiller Home Price Index, Consumer Confidence
Wednesday – Durable Goods Orders, FOMC Meeting Announcement
Thursday – GDC, Jobless Claims, Pending Home Sales Index Friday – Personal Income and Outlays, Chicago PMI, Consumer Sentiment, Ben Bernanke Speaks
HEADLINES:
U.S. stocks advanced for a third straight session Thursday, with the Dow closing at almost a 3-year high following a slew of strong earnings.
Sales of existing homes increased in March. Home sales rose at an annual rate of 5.1 million in March, up 3.7% from February, the National Association of Realtors said Wednesday. However, sales were 6.3% lower than in March 2010.
With a 4% gain so far this month, following March’s 10% rise, benchmark oil futures are keeping up with a long-running trend – advancing in March, April and May before taking a breather in June.
Toyota Motor Corp.'s global car production, disrupted by parts shortages from Japan's earthquake and tsunami, won't return to normal until November or December, imperiling its spot as the world's top-selling automaker.
US debt is over 14 Trillion, and counting..What’s next?
Standard & Poor's on Monday downgraded it’s outlook for the United States, citing a "material risk" that policymakers may not reach agreement on its large budget deficit. The US debt is over 14 Trillion (and counting) http://www.usdebtclock.org/
While S&P maintained the country's top AAA credit rating, it said that authorities have not made clear how they will tackle long-term fiscal pressures.
S&P said the move signals there's at least a one-in-three chance that it could cut its long-term rating on the United States within two years.
In spite of a rocky start to earnings season, promising economic news helped reassure investors this week. Stocks even managed to post modest gains on Friday in response to the hopeful signs.
Aside from food and gas prices, the Labor Department reported that consumer prices rose just 0.1% in March, lower than the predicted 0.2%. With prices inflating slower than expected, Americans got a break. And in today’s economy, consumers need every break they can get. When prices are lower, people tend to feel better and spend more – good news since consumer spending accounts for about 70% of the total U.S. economy.
Signs show that Americans are also feeling more optimistic. The U.S. consumer sentiment index rose from 67.5 in March to 69.6 in April, beating expectations. This increase could be partially attributed to the addition of jobs for six straight months and an unemployment rate sitting at a two-year low. These positive numbers indicate job gains are helping Americans manage rising fuel costs and maintain a positive outlook.
Industrial production increased for the ninth straight month in a row, rising 0.8% in March, and factory production increased 9.1% in the first quarter. Total industrial production was 5.9% above its year-earlier level. These numbers are all higher than forecast last month, and are a good sign that factories will keep driving the U.S. economy.
These indicators show that prices are down, optimism is up, and factories are producing at higher levels than last year; all signs that our economy is still making progress. Earnings season will kick into high gear this week as Wall Street gets quarterly results from 110 members of the S&P 500, giving us a broad view of how Corporate America is doing.
ECONOMIC CALENDAR: Monday – Housing Market Index Tuesday – Housing Starts, Redbook Wednesday – Existing Home Sales, EIA Petroleum Status Report
Thursday – Jobless Claims, Philadelphia Fed Survey, Leading Indicators Friday – U.S. Market Holiday: Good Friday Observed
HEADLINES:
Congress sent President Barack Obama legislation cutting a record $38 billion from federal spending on Thursday. This measure will finance the government through the September 30th end of the budget year.
Bank of America's first-quarter income fell 39% on higher costs related to its mortgage business and litigation. The bank also settled a claim over faulty mortgage investments and set aside less money to cover bad loans. The earnings fell short of the 28 cents a share estimated by analysts surveyed by FactSet and revenue fell to $26.9 billion from $32 billion in the same period last year.
The first settlement with the Securities and Exchange Commission (SEC) could be reached as soon as next week. The securities regulator is in talks with major Wall Street banks to settle fraud allegations relating to the sale of toxic mortgage bonds to various investors that helped unleash the financial crisis.
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Here,” Member 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.
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.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer 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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Will high oil prices and stocks run a collision course?
A barrel of oil is now over $112 a barrel, and gas in our area is over $4 a gallon. Master card reported that gas purchases were down 5 weeks in a row. The higher prices now are already affecting consumer behavior and is acting as an overall ‘headwind’ for our economy. It seems for most analysts that something has to give; it’s either that oil prices moderate, or perhaps the stock market.
Fears of a government shutdown loomed large last Friday night. With less than an hour to spare, Congress pushed through a last-minute spending bill – the seventh in the past six months – which cut $2 billion and allows agencies to spend money through April 15. By that time, lawmakers expect to determine a budget for the remaining six months of the fiscal year. It is interesting to note how awareness of the potential shutdown affected investors.
As a result of the budget impasse, a sharply weaker dollar led investors into oil and commodities, while U.S. stocks fell. As we’ve mentioned before, equity markets don’t like uncertainty, and the exodus we saw on Friday is a classic example of this fact. At a time when concerns regarding the Middle East situation has sent oil prices surging, and the Japanese disaster has impacted supply chains, reaching a deal was extremely important. The last-minute agreement keeps 800,000 government workers on the job and a variety of services, from passport issuing to tax collecting, up and running. It also allows the military to continue receiving their paychecks.
“Both sides had to make tough decisions and give ground on issues that were important to them,” President Obama said. “But beginning to live within our means is the only way to protect those investments that will help America compete for new jobs.” Despite budget concerns, consumer confidence rose for a second consecutive week as an improving job market helped ease the burden of higher fuel costs.
As in the past, both international and domestic politics will continue to play a part in peoples investing decisions. The week ahead will likely be no exception as the new budget is voted on. Also next week, a series of labor reports are released and earnings season begins. We’ll let you know how things turn out in our commentary next week.
ECONOMIC CALENDAR: Tuesday – International Trade, Import and Export Prices, Bank of Canada Announcement, Treasury Budget Wednesday – Retail Sales, Business Inventories, EIA Petroleum Status Report, Beige Book
Thursday – Producer Price Index, Jobless Claims Friday – Consumer Price Index, Empire State Mfg, 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, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
HEADLINES:
Crude oil advanced 2.3% Friday, settling at $112 a barrel – its highest price in more than 30 months. In addition to sparking fears about a slowdown in the global economy, investors are also concerned about Libya's civil war and the country’s 80% drop in production.
On April 6 Portugal asked for international assistance, joining Greece and Ireland in receiving bailouts from the European Union and the International Monetary Fund. The country faces around €4.3 billion ($6.2 billion) of bond redemptions in April, followed by a repayment of €4.9 billion in June.
The quarterly earnings season begins next week. Gas and commodity prices have surged this year, and could spell trouble for the rebound in consumer spending and sales growth. Overall, earnings for the companies in the S&P 500 are expected to be up 11.5% over last year. Revenues are expected to rise 8%, remaining unchanged from the fourth quarter.
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Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member 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.
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.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer 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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What can investors expect after a strong first quarter?
The first quarter of 2011 has been one for the history books. Political turmoil in Northern Africa and the Middle East, as well as multiple catastrophes in Japan rattled many investors, but wasn’t enough to halt the running of the bulls. Despite noteworthy volatility, the Dow rose 6.9% to its best first quarter in 12 years, rebounding 6% from lows hit in mid-March.
January – The year started hesitantly as Americans considered the impact of political transition, both through QE2 measures and the new Republican majority. At the end of the month, political strife in Egypt was affecting world markets. Protests started there on January 25th when thousands of people took to the streets to protest poverty, rampant unemployment, government corruption and the autocratic governance of President Hosni Mubarak.
The price of oil rose with fears about the stability of maritime operations on the Suez Canal. As a major trade route, any interruption or closure has the potential to create a spike in oil and energy prices. Still, on the 31st, the Dow posted its highest close since October 2, 2008.
February – By Valentine’s Day, U.S. stocks climbed to fresh 2 1/2-year closing highs after the resignation of Mubarak removed a layer of uncertainty from global markets. Mubarak’s resignation dramatically reduced geopolitical risk and uncertainty from the region, and crude oil prices dropped to $85.16 a barrel. But the calm would last only a short while before similar issues in Libya made headlines. Although Libya supplies just under 2% of the world's oil supply, oil fears still caused the stock market to suffer its first weekly loss in a month. And while U.S. drivers were already feeling the pinch at the pump, gas prices took their biggest one-day jump in two years adding to concerns about the stability of the economic recovery.
March – On March 11, 2011 an 8.9 earthquake rocked Japan and generated a 30-foot-high tsunami that devastated the country’s northeastern coast. On the heels of this devastating news were reports of several damaged nuclear reactors. Almost immediately, Japan’s recession-burdened stock markets dropped. Many of the nation’s industries, including automotive factories and electronics, were forced to halt operations. Simultaneously, the U.S. participated in establishing a no-fly zone over Libya – a situation that remains unstable. And in the Euro zone, debt woes flared up again as Portugal’s government collapsed and questions about Spain’s solvency persisted. Thankfully, the economic impact of Europe’s debt woes have remained relatively contained to date. Finishing the quarter, the markets struggled to regain their footing after two negative weeks, but by the end of March had managed to recoup losses on positive news regarding 2010’s fourth quarter, increased consumer spending, and higher GDP.
Despite upheaval in the Middle East, Eurozone changes, and an ongoing crisis in Japan, investors appear determined to maintain their confidence. Sending a signal that bodes well for the second quarter, the Dow rose 0.5% on Friday, reaching its highest intraday level since June 6, 2008. Although such positive news should be enjoyed, it is not to say more uncertainty and market volatility won’t arise. Many of the issues introduced in March still linger and remain developing stories. As always though, we are here to help you assess the risks and rewards of investing, to educate you, and to keep you informed. We hope you have a great week!
ECONOMIC CALENDAR: Tuesday – ISM Non-Mfg Index, FOMC Minutes Wednesday – EIA Petroleum Status Report
Thursday –BOE Announcement, ECB Announcement, Jobless Claims
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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.
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.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer 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.
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.
Despite international uncertainty, US data improving by Ken Mahoney
Despite a plague of turbulent international events, the bulls managed to triumph over uncertainty last week. U.S. stocks climbed for a third straight day Friday, erasing the past week’s losses from Japan’s nuclear crisis. In fact, all three measures ended two-week losing streaks as the S&P 500 added 2.7%, the Nasdaq climbed 2.8%, and the Dow rose 3.1% to its best week since July 9, 2010.
While several reasons could be cited for last week’s performance, the primary piece of good news was that fourth quarter GDP outperformed previous estimates as businesses maintained spending and demand. U.S. GDP increased at a 3.1% annualized rate, revised up from the 2.8% reported one month ago, and pleasantly surprised analysts.
Investor’s hopes have also boosted in anticipation of next Friday’s jobs report from the Labor Department. Payrolls increased by 195,000 workers this month, the most since May 2010 according to a preliminary survey by Bloomberg News. Manufacturing grew at its fastest pace in seven years, while record exports and consumer spending are prompting many companies to boost hiring. In light of these positive reports, Libya, the series of events in Japan and new changes in the Eurozone – circumstances which previously shook investor’s confidence – appear to have left markets unfazed last week.
As we have seen in times past, it is impossible to pinpoint exactly when markets will persevere or turn bearish. Last week’s reversal thus illustrates that the markets do not always behave rationally.
ECONOMIC CALENDAR: Monday – Personal Income & Outlays, Pending Home Sales Index Tuesday – S&P Case-Shiller HPI, Consumer Confidence Wednesday – ADP Employment Report, EIA Petroleum Status Report
Thursday – Jobless Claims, Chicago PMI, Factory Orders
Friday – Motor Vehicle Sales, Employment Situation, ISM Mfg Index, Construction Spending Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
HEADLINES:
The U.S. Postal Service announced plans to shutter seven district offices (located in Columbus, South East Michigan, Northern Illinois, South East New England, South Georgia, Big Sky and Albuquerque) eliminating 7,500 jobs. When fully implemented, the Postal Service estimates the cuts will lead to about $750 million in annual savings. The agency also plans to close as many as 2,000 post offices over the next year and hopes to end Saturday delivery service.
On the heels of Portuguese Prime Minister Jose Socrates’ resignation over austerity measures, an EU Summit was held last week to negotiate the details of the European Stability Mechanism. In 2013, the ESM will have a lending capacity of 500 billion euros. Standard & Poor's downgraded Portugal's long-term credit, bringing the country's credit standing closer to junk status. A bailout may wait till June as the country needs to first figure out its political situation.
Japanese engineers struggled to pump radioactive water from a crippled nuclear power station after radiation levels soared in seawater near the plant. Prolonged efforts to prevent a meltdown at the 40-year-old plant have also intensified concern around the world about nuclear power. The crisis at the plant, 150 miles north of Tokyo, has overshadowed a big relief and recovery effort from the magnitude 9.0 quake and the huge tsunami it triggered on March 11 that left more than 27,100 people dead or missing in northeast Japan.
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Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member 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.
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.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer 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.
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.
March Madness continues for US markets … By Ken Mahoney
The markets bounced back on Monday as investors embraced ‘Monday Merger Mania’. AT&T announced a 39 Billion Dollar deal to buy competitor T-Mobile. Investors are also hoping that the crisis in Japan is stabilizing ‘a bit’, while the Libya conflict will be measured in ‘days’.
Between situations in Japan and Libya, stocks faced some serious headwinds last week. The Dow declined 1.5%, the S&P 500 fell 1.9% and the Nasdaq dropped 2.7%. The Libyan cease-fire announcement temporarily calmed concerns about developments in the Middle East on Thursday and Friday, but ongoing uncertainty eventually caused the rally to slow and it wasn’t enough to recover from Wednesday’s thrashing.
Recent events, including the nuclear disaster in Japan, international forces b
ombing in Libya, and the possibility of more currency market intervention will likely keep investors reacting to headlines in the weeks ahead. We are currently facing an extremely media-driven market that responds quickly to what is visible in the news. At times like this, it is more important than ever to avoid trading based on emotion rather than facts or fundamentals. Even when things are uncertain, there are often many promising opportunities to be found.
Consider one example:
Some people see huge opportunities in Japan. Since experts are optimistic that the earthquake's impact will have a relatively mild long-term effect on Japan’s economy, a cross-section of investors are watching the Japanese market with the intent to invest – viewing the Nikkei’s sharp drop as the best time to get in. In fact, a whopping $956 million flowed into Japanese equities in the week ending March 16 alone, according to data from Thomson Reuters Lipper service. While we are not necessarily advocating this strategy for you, it does highlight the importance of seeking out opportunities even when things look grim.
Despite the complicated and unpredictable elements at play, these events remind us of the nature of the markets: ups and downs are to be expected. Although we've quoted him before, now is a good time to recall the words of billionaire investor Warren Buffet who said, “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”. And always remember, we’re monitoring the situation closely.
ECONOMIC CALENDAR: Monday – Existing Home Sales Tuesday – Redbook Wednesday – New Home Sales, EIA Petroleum Status Report
Thursday – Durable Goods Orders, Jobless Claims Friday – GDP, Consumer Sentiment
.
HEADLINES:
America’s top military commander says a United Nations-authorized no-fly zone over Libya has effectively been achieved. The Chairman of the U.S. Joint Chiefs of Staff, Admiral Mike Mullen, is calling the initial phase of a multi-national effort to take control of Libyan airspace a success. Mullen says Libyan command-and-control centers and air defense installations have been struck, and that leader Moammar Gadhafi’s forces effectively are grounded.
The U.S. cost of living hit a record high (127.4) in February, according to the Chained Consumer Price Index. The previous high of 126.9 was reached in July 2008, before economic markers like unemployment and stock prices were affected. Simultaneously, states will be cutting back services this year at the same time they increase taxes in order to close enormous budget deficits.
Japanese government officials say food and milk contaminated with radiation is being detected in a wider than expected area. Some shipments are now being stopped, although authorities stress that ingesting the items will not immediately harm people.
Nissan Motor Co. said Sunday that it will start parts production and vehicle assembly operations this week in Japan, becoming the first car maker to restart its entire auto production process after a devastating quake brought the country's auto industry to a standstill.
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Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member 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.
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 Nikkei is an Index of 225 leading stocks traded on the Tokyo Stock Exchange.
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.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer 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.
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.
Japan’s earthquake sends shock waves around the Globe Ken Mahoney
On Friday, an 8.9 earthquake rocked Japan and generated a 30-foot-high tsunami that devastated the northeastern coast. In consideration of the widespread destruction, human suffering is the issue of primary concern at this time. Simultaneously though, it is crucial to consider the economic impact of this natural disaster. What affects are we already experiencing?
Though Japan’s recession-burdened stock markets dropped, the expected scope of the rebuilding effort sent U.S. stocks climbing on expectations for increased demand for materials. Interestingly, we also saw a $3 a barrel drop in oil prices inspired by anticipation of decreased Japanese demand. At the same time, some speculate that the probable increase in Japan’s spending has the potential to propel their already strong currency, the yen, higher as Japanese money invested abroad is applied to rebuilding. How long and to what extent such factors will influence the world economy remains to be seen.
The earthquake also took a heavy toll on the nation’s industries, forcing Toyota, Honda and Nissan to halt operations at most of their domestic plants. These shutdowns come at a time of strong recovery in global consumption (U.S. auto sales clocked their strongest pace in 18 months in February ). Also suspending operations are Panasonic, Sony, and Toshiba. A bigger impact will likely come in the weeks ahead as the disruptions make their way through the global supply chain.
In today’s world, we exist as part of a connected, global community. And although it is fitting to discuss how international situations can have an impact domestically, we should also remember that such analysis cannot diminish Japan’s catastrophic losses. While the weeks and months ahead will gradually reveal the extent of the disaster, it will also give us a chance to demonstrate our humanity and generosity.
SPECIAL NOTE: While we do not want to discourage you from donating toward relief efforts in Japan, we urge you to exercise caution. Whenever a natural disaster strikes, there are always unscrupulous individuals who will attempt to take advantage of the generosity of those who wish to give. Many reputable sources warn donors to be cautious when making contributions to relief agencies and charities. Please visit the Better Business Bureau’s Wise Giving Alliance for more information about how to donate safely. See www.bbb.org/charity.
ECONOMIC CALENDAR: Tuesday – Empire State Mfg Survey, Import and Export Prices, Treasury International Capital, Housing Market Index, FOMC Meeting Announcement Wednesday – Housing Starts, Producer Price Index, EIA Petroleum Status Report
Thursday – Consumer Price Index, BOE Announcement, International Trade, Jobless Claims, Industrial Production, Leading Indicators, Philadelphia Fed Survey
HEADLINES:
Professional-football players disbanded their union and filed a lawsuit against the NFL and team owners on Friday. The collapse of the talks makes it likely that NFL owners will bar their players from turning up to work and withholding their paychecks. The players filed suit for the right to be allowed to work.
U.S. consumer sentiment fell to its lowest level since October 2010 as gasoline prices rose. The preliminary March reading on the overall index on consumer sentiment came in at 68.2, down from 77.5 in February. The numbers were in contrast to the retail sales report earlier Friday, which showed sales posted their largest gain in four months in February.
House Republicans are preparing another stopgap-spending bill that would cut $6 billion from current levels and keep the government running for three more weeks. The stopgap-spending bill would buy lawmakers more time after existing funding authority expires on March 18 to agree on final spending levels for the 2011 fiscal year, which ends September 30. The Senate would have to approve it as well before it could be sent to President Obama to sign into law.
Forbes 2011 Billionaires List breaks two records: total number of listees (1,210) and combined wealth ($4.5 trillion). Mexico's Carlos Slim Helu, added $20.5 billion to his fortune, and is now worth $74 billion. Bill Gates (#2) and Warren Buffett (#3) both added a more modest $3 billion to their piles and are now worth $56 billion and $50 billion, respectively.
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