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Archive for March, 2011

Weekly Market Commentary – March 14, 2011

Posted in Uncategorized, tagged , , , , , , , , , , , , , on March 15, 2011 | Leave a Comment »

Weekly Market Update
Week of March 14, 2011

THE MARKETS:

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,[1] the expected scope of the rebuilding effort sent U.S. stocks climbing on expectations for increased demand for materials.[2]  Interestingly, we also saw a $3 a barrel drop in oil prices inspired by anticipation of decreased Japanese demand.[3]  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.[4]  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.[5]   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[6]).  Also suspending operations are Panasonic, Sony, and Toshiba.[7]  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       

Data as of 03/11/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor’s 500 -1.28 3.71 13.4 0.36 0.57
Dow -1.03 4.03 13.5 1.75 1.32
NASDAQ -2.48 2.36 14.6 4.01 3.23
MSCI EAFE -3.09 1.68 7.85 -0.88 2.02
10-year Treasury Note (Yield Only) 3.49 N/A 3.72 4.76 4.93

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:

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.[8]

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.[9]

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.[10]

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.[11]


QUOTE OF THE WEEK:

“In separateness lies the world’s great misery, in compassion lies the world’s true strength.” – Buddha
RECIPE OF THE WEEK:

Maple Ricotta Flan



From: Better Homes and Gardens
This 5-ingredient dessert can be pulled together in just 15 minutes.

Servings: Makes 6 servings.

Prep: 15 mins

Total: 45 mins

Ingredients:

1/4 cup plus 1 tsp. pure maple syrup

4   beaten eggs

1 15-oz. container ricotta cheese

1/4 cup sugar

1 tsp. vanilla

Ground nutmeg or cinnamon (optional)

Directions:

1. Preheat oven to 325 degrees F. Divide the 1/4 cup maple syrup among six 6-ounce custard cups; tilt custard cups to coat bottoms evenly.

2. In a bowl combine eggs, cheese, sugar, vanilla, and remaining teaspoon maple syrup. Mix until well combined but not foamy. Place the custard cups in a 3-quart rectangular baking dish. Divide egg mixture among custard cups. Sprinkle with nutmeg. Place the baking dish on an oven rack. Pour boiling water into the baking dish around custard cups to a depth of 1 inch. Bake for 40 to 45 minutes or until a knife inserted near the centers comes out clean.|

3. Remove cups from water. Cool completely in custard cups. Cover and chill until serving time. To unmold flans, loosen edges with a knife, slipping point of knife down sides to let air in. Invert a dessert plate over each flan; turn custard cup and plate over together.

GOLF TIP OF THE WEEK:

Putting Yips?

Once fear gets a hold on your nervous system, it can seem like it will never end. Goodbye confidence.  What can you do?  Solve the problem by taking two actions:

1)    Spot the fear early. When spotted, step back, take a breath, and restart your routine. Once your body/mind learns you won’t give in to your nerves, it actually gets the message.

2)    Put your mind on the present, not the future. Don’t think about everything that can go wrong with your shot. Just focus on your movement. 

Following this routines brings you into the “now.” Use this to combat fear.

 


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!
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.

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Weekly Market Commentary – March 7, 2011

Posted in Uncategorized, tagged , , , , , , , , , , , , , , , , , on March 10, 2011 | Leave a Comment »

Weekly Market Update
Week of March 07, 2011

THE MARKETS:

As of late, the big question on everyone’s mind has been: Will the recovery stick? And while the talking heads have been debating their positions on the issue, the chief talking head himself – Federal Reserve Chairman Ben Bernanke – appeared before the House Financial Services Committee and a Senate panel last week to offer his semiannual report on the state of the economy.   What was the word?  Bernanke said the economy is gaining traction and stressed that the Fed is prepared to act if higher commodity prices start to have a negative effect on U.S. growth.[i]  His comments also offered a brighter outlook on the status of rising energy costs, inflation risk, and job creation. Good news indeed!

While acknowledging that a prolonged rise in oil prices could pose a danger to the economic recovery, the Fed chief countered that other risks to the economy, including rising commodity prices, were more likely to affect consumer spending.  At the same time, Bernanke reiterated his commitment to keeping inflation low, and added: “I recognize that the increases in gas prices are very troubling… but they are not inflation per se. Inflation is an increase in the overall price level, which is very low. The inflation rate right now is 1.2% for all goods and services”.[ii]

As for jobs, Bernanke expressed confidence that growth would increase this year.[iii]  Supporting his view, the Labor Department announced on Friday that the nation’s unemployment rate fell to 8.9% in February, the lowest level in two years.  The report suggests that companies are gaining confidence in the economy and their own financial prospects.  It also strengthens hopes that businesses will shift into a more aggressive hiring mode to heighten momentum for the ongoing recovery.[iv]

Against the backdrop of geopolitical turmoil that has packed the headlines in recent weeks, the Fed chairman’s testimony offered a positive perspective on the improving state of the American recovery.

ECONOMIC CALENDAR:
Monday – Consumer Credit                                                                                 Tuesday – ICSC-Goldman Store Sales, Redbook                                                  Wednesday – EIA Petroleum Status Report  
Thursday – BOE Announcement, International Trade, Jobless Claims, Treasury Budget           Friday – Retail Sales, Consumer Sentiment, Business Inventories

Data as of 03/04/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor’s 500 0.10 5.05 17.6 0.53 0.70
Dow 0.33 5.12 16.5 2.08 1.63
NASDAQ 0.13 4.97 21.5 4.19 3.15
MSCI EAFE 0.38 5.27 14.3 -0.26 2.46
10-year Treasury Note (Yield Only) 3.42 3.31 3.61 4.68 4.94

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:

On Tuesday, Apple Chief Steve Jobs introduced the world to the iPad2, a sleeker, faster follow-up to the original. The market sent shares of Research in Motion down 0.3%, and Motorola was down by over 4%.  The new iPad2 sports front and back facing cameras, more memory, and a faster processor, but despite the upgrades, the iPad2 starts at $499, while Xoom tablets will run between $599 and $799.[v]

President Barack Obama said Saturday that he is willing to offer deeper spending cuts if it means Republicans and Democrats can work out their differences and reach an agreement on the federal budget.  The standoff over government spending intensified this past week as Republicans ripped the White House’s offer to make $6.5 billion in budget cuts this fiscal year, and the threat of a government shutdown lay over the horizon.  Government operations are now running on a stopgap funding measure that expires on March 19.[vi]

U.S. manufacturers expanded at the fastest pace in nearly seven years last month, but a sudden rise in the price of raw materials could threaten their profits.  The Institute for Supply Management said its index of manufacturing activity rose to 61.4 in February, the highest reading since May 2004.  But prices paid for steel, plastics, rubber and other raw materials rose for a third straight month, a sign that increasing production costs could spark higher inflation.[vii]

National Football League owners and players agreed Friday to a seven-day extension to contract talks in an effort to resolve the league’s labor dispute.  The agreement means the CBA will remain in force until the night of March 11 and averts the threat of a lockout by the owners or a lawsuit by the players for at least a week.   The owners were due to earn about $4 billion in TV money this coming season, even in the event of a lockout.[viii]


QUOTE OF THE WEEK:

“I know of no more encouraging fact than the unquestioned ability of a man to elevate his life by conscious endeavor.”  – Henry David Thoreau
RECIPE OF THE WEEK:

Baked Brie


From: Better Homes and Gardens

The topping of tomato preserves or mango chutney over a round of baked Brie keeps this buffet table favorite lightweight and fresh flavored.

Servings: Makes 8 servings.

Prep: 25 mins

Total: 35 mins

Ingredients:

1 small onion, cut into thin wedges

2 teaspoons butter or margarine

1/3 cup tomato preserves or mango chutney

1/2 teaspoon snipped fresh rosemary or 1/4 teaspoon dried rosemary, crushed

1/8 teaspoon crushed red pepper

1 8-ounce round Brie cheese (about 4 inches in diameter)

Breadsticks, assorted crackers, or French bread slices

Directions:

1. For caramelized onions, cook onion in hot butter or margarine in a small saucepan, covered, over low heat about 15 minutes or until tender and golden, stirring occasionally. Meanwhile, stir together tomato preserves or mango chutney (cut up any large pieces of chutney), rosemary, and crushed red pepper in a small bowl.

2. Cut off a thin slice from the top of the Brie to remove the rind; discard. Place the Brie in an ungreased 9-inch pie plate. Top with tomato or chutney mixture, then with caramelized onions.

3. Bake, uncovered, in a 325 degree F oven about 10 to 12 minutes or until Brie is softened and warmed but not runny. Serve with breadsticks, crackers, or bread slices. Makes 8 servings.

GOLF TIP OF THE WEEK:

Logo Lineup

One of the most common errors in putting is poor alignment.  Specific sources of trouble can be posture, head position, or ball position.  Many golfers have not trained their eyes to see the line correctly and are aiming their putter to the right or left of the hole without being aware of it.

The next time you head out to play or practice, try experimenting with lining up the logo or marked line.  Start by practicing 2 or 3 footers to ensure that your aim is true. If you have aligned properly, you will see the logo turning straight over the top of the ball as it falls into the hole. Once you are comfortable with these short putts, begin to practice from longer distances.


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!
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

Read Full Post »

Weekly Market Commentary – February 28, 2010

Posted in Uncategorized, tagged , , , , , , , , , , , , , , , , , , , on March 1, 2011 | Leave a Comment »

Weekly Market Update
Week of February 28, 2011 – SPECIAL EDITION

Oil and Gas on Higher Ground 

As turmoil in the Middle East continues to roil the markets, it is no coincidence that “oil” is at the root of economic concerns.  From an investment perspective, analyzing oil’s relationship to the markets is crucial, but the reality is that nearly everyone (investors and non-investors alike) are affected by oil prices.  So what exactly is affecting the rise in oil costs? And, more importantly, do oil prices have the potential to derail America’s economic recovery? 

After the fall of dictatorial governments in Tunisia and Egypt, unrest has spread throughout the Middle East, with Libya dominating the spotlight this week.  The International Energy Agency reported late Friday that Libya is probably producing about 850,000 barrels of oil daily, down from its normal capacity of 1.6 million barrels, which represents just under 2% of the world’s oil supply.  While the sudden oil shortage hits European refiners the hardest,[i] oil fears still caused the stock market to suffer its first weekly loss in a month. For the week, the S&P 500 slid 1.7%; the Dow dropped 2.1%, and the Nasdaq fell 1.9%.[ii]  Happily, fears were eased somewhat on Friday when Saudi Arabia reported it has increased its crude oil production to 9 million barrels a day to make up for supplies lost in Libya.[iii]

What we’re seeing right now is a tug of war between worry and economic fundamentals. While most U.S. economic data looks good, investors are focused on the potential implications of interruptions in oil production. For the moment, this issue will dominate the headlines regardless of how attractive other data looks.
*Graph courtesy of http://money.cnn.com/2011/02/25/markets/oil/index.htm

U.S. drivers have already been feeling the pinch at the pump, with gas prices spiking 6 cents on Friday, the biggest one-day jump in two years.  The national average price for a gallon of regular gas rose to $3.29, according to AAA, marking the fourth day in a row that prices have risen and bringing the national average to the highest level since October 2008.  In general, every $1 increase in the price of oil costs consumers $1 billion over the course of a year.[iv]  Higher oil prices also weigh on the U.S. economy by increasing the costs of moving goods,[v] thus transferring  rising costs to manufacturers, wholesalers, retailers, and eventually the American public.
*Graph courtesy of http://money.cnn.com/2011/02/25/news/economy/gas_price_spike/index.htm

If gas prices continue to rise as some analysts predict, how will this affect the economic recovery?  Put simply, there is no way to know for sure. Granted, when gas prices go up, Americans have less to spend on everything else.  And since consumer spending makes up over 70% of the U.S. economy[vi], a drop in spending could slow the recovery down.  At the same time though, modest increases in fuel prices do not inevitably cause economic slowdowns. What they more often do is cause alarm, thus affecting consumers’ perceptions about what they can afford and causing them to react by tightening their belts.

So while the natural reaction may be to retreat to conservative investments and cut-off all spending on nonessentials, it is important to avoid overreacting. The coming week promises to shed more light on the true status of our domestic economy as various data related to jobs, payrolls, and manufacturing are released.[vii] 

ECONOMIC CALENDAR:
Monday – Personal Income and Outlays, Chicago PMI, Pending Home Sales
Tuesday – Redbook, Construction Spending
Wednesday – ADP Employment Report, EIA Petroleum Status Report, Beige Book
Thursday – ECB Announcement, Jobless Claims, Productivity and Costs, ISM Non-Mfg Index                                                                                                                                               Friday – Employment Situation, Factory Orders

Data as of 02/25/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor’s 500 -1.72 4.95 19.7 0.47 0.59
Dow -2.10 4.78 17.5 1.93 1.62
NASDAQ -1.87 4.83 24.5 4.32 2.29
MSCI EAFE -1.49 4.77 17.7 1.44 2.40
10-year Treasury Note (Yield Only) 3.59 N/A 3.64 4.57 5.08

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.


QUOTE OF THE WEEK:

“The secret of happiness is freedom. The secret of freedom is courage.”– Thucydides


RECIPE OF THE WEEK:

Lemon Verbena Cookies

From: Better Homes and Gardens

Lemon verbena adds pleasant tang to these simple sugar cookies.

Servings: 36 cookies

Prep: 20 mins

Total: 28 mins

Ingredients

2-1/2 cups all-purpose flour

2 tablespoons dried lemon verbena leaves, crushed

2 teaspoons baking powder

1/4 teaspoon salt

1 cup butter (no substitutes), softened

1-1/2 cups sugar

2 eggs

1 teaspoon vanilla

Directions

1.Combine flour, lemon verbena leaves, baking powder, and salt; set aside. Beat butter in a large bowl with an electric mixer on medium speed for 30 seconds. Add sugar, eggs, and vanilla. Beat until well combined. Add half of the flour mixture. Beat until combined. Stir in remaining flour mixture with a wooden spoon until combined.

2. Drop dough by rounded teaspoonfuls 2 inches apart on an ungreased cookie sheet.  Bake in a 350 degree F oven for 8 to 10 minutes or until edges are lightly browned. Remove to wire racks and cool. Makes 36.

 


GOLF TIP OF THE WEEK:

Maintain Your Balance

Maintaining your balance is important in all sports. In golf, better balance throughout your swing insures a solid shot. Here are two ways to improve your balance, which in turn will improve your ball contact and control, thus leading to lower scores.

1) Limit the amount of force you use when hitting the ball. Too many golfers think they need to use all their strength to hit the ball and this causes severe control problems. The majority of golf professionals will tell you they only use about 75% of their strength when hitting and/or swinging at the ball.

In order to practice this, simply go to the driving range and try to develop the feeling you are only hitting and/or swinging at the ball with 75% of your power by:

A. Hitting balls with a 3/4 back swing
B. Hitting balls shorter distances, say 25% shorter.

2) Wear the slickest soled regular street shoes or boots possible whenever you practice (NOT spikes or golf shoes). It’s amazing how fast you learn to swing within yourself, keep in balance and maintain control when NOT doing so could cause you to lose your balance.


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!
Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.

*Stock investing involves market risk including loss of principal.  The fast price swings of commodities will result in significant volatility in an investor’s holdings.  Government bonds and Treasury Bills are guaranteed by the US Government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.

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.

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