Weekly Commentary – September 19, 2010

Eyes on Europe and the Fed

U.S. stocks posted solid performance Friday to wrap up a five-day winning streak for the first time since July. The Dow and the S&P 500 were each up around 5% for the week, while the NASDAQ climbed 6.3% for the week. The five-day move was the best we’ve seen in two years.[1]

Stocks rallied Thursday after the European Central Bank announced a coordinated action with other central banks and the U.S. Federal Reserve to offer banks easier access to dollar loans. That move, combined with comments from French and German leaders expressing confidence in Greece’s place in the euro-zone, helped propel the market’s performance last week.[2] It is likely that comments from European leaders and bankers will continue to drive investor sentiment as the debt crises in Europe continues.

It is against the backdrop of European woes and a softening U.S. economy that the Fed will hold its policy-setting meeting Tuesday and Wednesday. The Federal Open Market Committee expanded its meeting from one to two days, which some investors have taken as a signal that action will be taken, though what that action will be is not clear.

One suggestion is that the Fed will try to pump money into the economy by purchasing bonds through a third round of quantitative easing, known as QE3. But this modified version of QE3, coined Operation Twist, would involve trying to boost lending by swapping out short-term bonds with long-term ones. The intended outcome of this swap would be to lower long-term interest rates without increasing the size of the Fed’s balance sheet.[3] At this point though, we can only speculate about what the Fed will do.

In the week ahead, eyes will be focused on Europe and the Federal Reserve as they work to keep money flowing around the world.

ECONOMIC CALENDAR:                                                                                                    

Monday – Housing Market Index                                                                                     

Tuesday – Housing Starts, FOMC Meeting Announcement

Wednesday – Existing Home Sales, EIA Petroleum Status Report

Thursday – Jobless Claims

Data as of 09/16/2011	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	5.35	-3.31	8.12	-1.57	1.13
Dow	4.70	-0.59	8.63	-0.09	1.98
NASDAQ	6.25	-1.15	13.9	3.46	5.47
MSCI EAFE	4.41	-10.9	-2.81	-2.50	2.98
10-year Treasury Note (Yield Only)	1.91	N/A	2.76	4.80	4.84

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. N/A means not available.

HEADLINES:

President Barack Obama said on Saturday that Americans need to be ready to “pay their fair share” to narrow the deficit, previewing his proposals to Congress that are expected to include more taxes on the rich. On Monday, the President will call for a new minimum tax rate for individuals making more than $1 million a year to ensure that they pay at least the same percentage of their earnings as middle-income taxpayers, according to administration officials.[4]

Wall Street was cordoned off for a second consecutive day Sunday as about 300 to 400 people remained near Chase Manhattan Plaza for a protest dubbed “Occupy Wall Street.” A smaller group, followed by a column of police motorcycles, marched uptown on Broadway as people beat drums, strummed guitars, and held up signs reading “end corporate welfare” and “we are too big to fail.”[5]

With Europe’s credit and banking crisis seeming to get worse by the day, there are now several reports that Brazil – as well as Russia, India, and China – may look to buy up a portion of sovereign debt from troubled European nations. The creation of a so-called euro bond, which would act as a common debt instrument much like the euro now acts as a unified currency, has been mentioned by many economists and financial experts as a possible way to help end the crisis.[6]

QUOTE OF THE WEEK:

There isn’t a person anywhere who isn’t capable of doing more than he thinks he can. –Henry Ford
RECIPE OF THE WEEK:

Frozen Crème Brulee

From: Vegetarian Times

These simple crèmes are made of vanilla ice cream topped with a brulee of soft caramel.

Ingredients:

2 cups vanilla ice cream, slightly softened

2/3 cup granulated sugar

1/4 cup evaporated milk

Fresh berries or mint sprigs for garnish, if desired

 

Directions:

1) Spread 1/2 cup ice cream into 4 oval crème brulee ramekins. Freeze until firm.

2) Meanwhile, combine sugar and 1/3 cup water in saucepan, and bring to a boil over medium-high heat, stirring to make sure sugar dissolves. Using pastry brush dipped in water, wipe down inner sides of saucepan to dissolve any sugar crystals that cling. Cook mixture about 10 minutes, or until it begins to caramelize (swirl pot to brown evenly). Cook 1 to 2 minutes more or until caramel is medium-brown. Remove from heat, and stir in 2 tablespoons water. Let cool 3 minutes, stirring occasionally. Stir in evaporated milk. Cool completely.

3) Spread thin layer of cooled caramel over ice cream in ramekins. Return to freezer until ready to serve. Garnish with fresh berries or mint sprig, if desired.

 

GOLF TIP OF THE WEEK:

Short Game Swing

It is better to think long, slow, and smooth for the short game. Precision is important around the green, so there isn’t much margin for error. It’s vital that you maintain a steady, smooth rhythm and tempo for every short shot you hit. Forcing yourself to make a short swing because you have to move the ball a short distance throws off your timing.

Instead, try counting through each short shot you hit: “One, two, three.” Count “one” as you start the club away from the ball, “two” when you reach the top of the swing, and “three” as you swing through. From 40-yard pitch shots to delicate chips off the apron, maintain this same count. If you do, you’ll find it much easier to make consistent contact.

HEALTH TIP OF THE WEEK:

Tea Off in the Morning

Hot tea can slash your risk of kidney cancer by 15 %, according to a review in the International Journal of Cancer.

 

GREEN TIP OF THE WEEK:

Use Cloth Grocery Bags

Paper or plastic? Paper is better, but cloth is even better than that. Try buying a few cloth grocery bags and take them with you to the grocery store. Some stores will even give you a discount for using reusable bags. If expense is an issue, just buy 1-2 at a time, until you eventually are using all cloth bags.

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.

Investment advisory services offered by Calandra Wealth Management, LLC – A Georgia Registered Investment Advisor.

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.

 

---

[1]
http://money.cnn.com/2011/09/18/markets/stocks_lookahead/index.htm

[2]
http://www.marketwatch.com/story/us-stock-indexes-rise-for-fifth-day-2011-09-16?dist=markets

[3]
http://pragcap.com/operation-twist-qe3-style

[4]
http://www.msnbc.msn.com/id/44563075/ns/politics-the_new_york_times/t/obama-tax-plan-demand-more-millionaires

[5]
http://www.bloomberg.com/news/2011-09-18/wall-street-occupied-by-a-few-hundred-people-as-protesters-ranks-dwindle.html

[6]
http://money.cnn.com/2011/09/14/markets/thebuzz/index.htm?iid=SF_E_River

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Weekly Commentary -September 12, 2011

Ten Years Later

For most of us, 9/11 feels like yesterday. For a younger generation, Sunday’s services etched a memory of that day onto minds too young to recall it. Three-thousand-six-hundred and fifty-two days have since passed, but as New York City Mayor Michael Bloomberg so poignantly stated, “We can never un-see what happened here.” While most Americans wish they never had to witness the events of that defining day, they are equally determined never to forget them.

The 10^th anniversary closed a decade that witnessed two wars, massive changes in national security, the Great Recession, and most recently, the death of the elusive terrorist who masterminded the attack. And no longer is ground zero merely a reminder of what was, but a symbol of rebirth. With the breathtaking National September 11 Memorial now open and the yet-to-be-finished Freedom Tower rising 961 feet above the street where 2,983 lost their lives, history remembers the resilience of the human spirit.

The financial world also stands changed by the events of September 11. Once the physical financial center of the country, the area near ground zero has become largely an upscale residential neighborhood. Pre 9/11, tourists could visit the New York Stock Exchange and stand in a galley to watch the trading, but not anymore. Even though the building itself sustained no damage when the Twin Towers fell, the exchange has since been considered a target and the visitor center remains closed. On the floor of the exchange, traders must now go through security barriers and x-ray machines under the watch of armed officers – something those who have flown on a commercial airliner since 9/11 can relate to.

While Sunday marked a day of reflection and tears for many of us, and while both the tragedy and heroism of 9/11 will long be remembered, Americans will move forward this week. Concerns surrounding Europe’s debt crisis will rear their ugly heads again, and headlines about stock market volatility will doubtless be featured in the news. And when they are, we would all do well to keep things in perspective and be thankful for the life we enjoy, even if it has been altered by the events of September 11^th, 2001.

ECONOMIC CALENDAR:
Tuesday – Import and Export Prices, Treasury Budget
Wednesday –Producer Price Index, Retail Sales, Business Inventories, EIA Petroleum Status Report
Thursday – Consumer Price Index, Empire State Mfg Survey, Jobless Claims, Industrial Production, Philadelphia Fed Survey
Friday – Treasury International Capital, Consumer Sentiment                                                          

Data as of 09/09/2011	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	-1.68	-8.22	4.53	-2.23	0.63
Dow	-2.21	-5.06	5.54	-0.70	1.44
NASDAQ	-0.50	-6.97	10.4	2.79	4.62
MSCI EAFE	-5.76	-14.6	-4.71	-3.20	34.5
10-year Treasury Note (Yield Only)	2.00	N/A	2.76	4.77	2.09

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. N/A means not available.

HEADLINES:

Moments of silence were observed in New York City Sunday on the 10^th anniversary of the terror attacks that destroyed the World Trade Center and killed nearly 3,000 people. “Ten years have passed since a perfect blue sky morning turned into the blackest of nights. Since then, we have lived in sunshine, and in shadow,” said New York City Mayor Michael Bloomberg.[i]

China’s record imports and a rebound in lending signaled strength that offers a bright spot in a global economy contending with Europe’s debt crisis and weakening U.S. job gains. Government reports in the past two days showed that shipments from abroad jumped 30% and new local-currency loans were a more-than-forecast 548.5 billion yuan ($86 billion).[ii]

The average price for regular gasoline at U.S. filling stations rose 5.76 cents to $3.6669 a gallon last week.[iii]

Bank of America Corp. is preparing to slash 40,000 or more jobs and close 10% of its branches nationwide. The details of the plan were not officially announced, but the information was disclosed by three Bank of America executives who have been briefed on the plan but were not authorized to speak publicly.[iv]

QUOTE OF THE WEEK:

“The human spirit is stronger than anything that can happen to it.” – C.C. Scott
RECIPE OF THE WEEK:

Roasted Asparagus with Garlic-Lemon Sauce

From: Eating Well

Ingredients:

2 bunches asparagus, (about 2 pounds), trimmed

2 teaspoons extra-virgin olive oil, divided

1/8 teaspoon salt

2 tablespoons low-fat mayonnaise

2 tablespoons shredded Parmesan cheese

2 tablespoons water

2 anchovy fillets, minced

1 small clove garlic, minced

1 tablespoon lemon juice

2 chopped hard-boiled eggs (optional)

 

Directions:

1) Preheat oven to 425 degrees F.

2) Toss asparagus with oil and salt in a large bowl. Spread on a baking sheet and roast, stirring once halfway through, until tender, 15 to 20 minutes.

3) Combine mayonnaise, Parmesan, water, anchovies, garlic, and lemon juice in a small bowl. To serve, drizzle the asparagus with the sauce and top with hard-boiled egg (if using).

GOLF TIP OF THE WEEK:

Practice your Putting at Home

Believe it or not, 40% or more of the strokes you make take place on the putting green. And yet, so often, the club responsible for so many strokes receives the least amount of quality practice time.

You can even practice your putting while at home. Here’s an old Arnold Palmer tip: On a smooth floor (cement, wood, linoleum, etc.) throw down a nickel and putt it around the room without scuffing the floor or missing the nickel. If you can execute this drill consistently, you will see your putting improve. Plus, it’s fun. One note: Be careful not to scratch your floors.

HEALTH TIP OF THE WEEK:

Vitamin D and Sunshine

Most Americans are Vitamin-D deficient which can lead to health risks like osteoporosis, heart disease, and high blood pressure. The main sources of Vitamin D are sunlight, foods, and supplements. The National Institute of Health recommends that adults get 15 mcg per day. While sunlight is the most efficient way to get the full daily dose of Vitamin D, be careful not to indulge more than 15 minutes at a time, a few times a week. And always wear sun protection if you plan to spend extended periods of time in the sunshine.

 

GREEN TIP OF THE WEEK:

Water Conscious Watering

Americans waste millions of gallons of water in gardens and lawns each year. Regularly check your sprinkler system and adjust sprinklers so that only your lawn is watered, not sidewalks or driveways.

 

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.
Investment advisory service offered through Calandra Wealth Management, LLC – A Georgia Registered Investment Advisor.

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.

---

[i]
http://www.cbsnews.com/stories/2011/09/11/national/main20104450.shtml

[ii]
http://www.bloomberg.com/news/2011-09-11/china-strength-defies-hard-landing-scenario.html

[iii]
http://www.bloomberg.com/news/2011-09-11/u-s-gasoline-rises-5-76-cents-to-3-69-a-gallon-survey-shows.html

[iv]
http://www.latimes.com/business/la-fi-bank-america-jobs-20110910,0,4275951.story

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Weekly Commentary – September 5, 2011

Understanding the August Jobs Report

The big news last week centered on the August jobs report, which was disappointing to say the least. Non-farm payrolls were unchanged in August but down 58,000 including revisions to June/July. The consensus expected a gain of 68,000. The unemployment rate remained unchanged at 9.1%.[1]

U.S. stocks tumbled 2% on Friday[2] in reaction to the news, as headlines showing zero jobs growth in August fueled investor concerns. And while the August numbers are certainly not attractive, there are a few underlying factors we would like to draw your attention to.

One of the reasons August’s numbers were so weak has to do with the Verizon strike, now over, that temporarily sidelined 46,000 workers. Were it not for that strike, private payrolls would have been up 62,000 including revisions.[3] As it stands, workers on strike are counted as unemployed when they go on strike and are added as newly employed when they go back to work. Now that they have returned to work, a future employment report will show an increase of 46,000. It’s strange how the system works isn’t it?

There was also some positive news in Friday’s report. Civilian employment, an alternative measure of jobs that includes start ups, increased 331,000 in August, which is very encouraging.[4] In general, when new businesses are starting up and hiring workers, it means the wheels of capitalism are turning in the right direction.

If you only look at the totals, it’s easy to say there was no employment growth in August, which is how most of the headlines read. But if you take time to look below the surface, a more balanced picture emerges. Much of August’s weakness can likely be attributed to financial turmoil in Europe, large swings in the stock market, and lawmaking that has brought much uncertainty to the hiring arena.

Although recession fears are still lingering, recent reports on auto sales, manufacturing and consumer spending suggest that the economy is still growing, albeit slowly.[5] We believe future jobs reports will reflect that.

ECONOMIC CALENDAR:                                                                                                 Monday – U.S. Holiday: Labor Day                                                                                      Tuesday – ISM Non-Mfg Index                                                                                Wednesday – Beige Book
Thursday – BOE Announcement, ECB Announcement, International Trade, Jobless Claims, EIA Petroleum Status Report

Data as of 09/02/2011	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	-0.24	-6.65	7.69	-2.09	0.36
Dow	-0.39	-2.91	8.92	-0.39	1.30
NASDAQ	0.02	-6.50	12.7	2.62	3.74
MSCI EAFE	0.08	-9.42	2.35	-2.58	2.14
10-year Treasury Note (Yield Only)	2.19	N/A	2.63	4.73	4.82

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. N/A means not available.

HEADLINES:

Bank of America Corp. and 16 other big banks have been hit with multiple accusations of securities-law violations and negligence in a series of lawsuits tied to more than $50 billion in mortgage securities. The lawsuits, filed late Friday by the Federal Housing Finance Agency, accuses lenders of selling bad mortgage securities to government-sponsored housing companies Fannie Mae and Freddie Mac.[6]

The euro came under significant pressure in European trading Tuesday, pulling down other sentiment-sensitive currencies, such as the pound and Australian dollar, with it. A steady flow of negative newsflow out of the euro zone pushed it down about 0.6% – a big move for a major currency – against the dollar.[7]

Though oil prices fell to near $88 a barrel Friday, crude has jumped about 16% since August 9^th, bolstered by signs industrial production in the U.S. continues to expand. The Institute for Supply Management said Thursday that U.S. manufacturing grew for the 25th straight month while analysts had expected a contraction.[8]

About 70,000 households and businesses along the Eastern Seaboard who lost power during Irene remain without it a week after the storm.[9]

QUOTE OF THE WEEK:

“Far and away the best prize that life has to offer is the chance to work hard at work worth doing.” – Theodore Roosevelt
RECIPE OF THE WEEK:

Hot Artichoke Dip

From: Vegetarian Times

Ingredients:

1 12-ounce package light silken tofu

2 tablespoons reduced-fat mayonnaise

1 tablespoon Dijon mustard

1 tablespoon lemon juice

2 cloves garlic, minced (about 2 teaspoons)

1/2 teaspoon onion powder

1 15.5-ounce can artichoke quarters in water, drained, rinsed, chopped

1 cup frozen chopped spinach, thawed and squeezed dry

1/2 cup grated Parmesan cheese

Paprika for dusting

 

Directions:

1) Preheat oven to 400 degrees F. Puree tofu, mayonnaise, mustard, lemon juice, garlic, and onion powder in blender or food processor until smooth. Transfer to bowl.

2) Stir artichokes, spinach, and Parmesan cheese into tofu mixture. Spoon into 8-inch glass pie dish or casserole. Bake 20 minutes. Dust with paprika; serve.

GOLF TIP OF THE WEEK:

Achieve Better Contact

To build a more precise swing, practice the “Gateway Drill.” Stick two tees in the ground just outside the heel and the toe of your driver (About 1 half inch on either side). Tee up a ball directly between the tees, and then swing the clubhead through the “gateway”. If the clubhead is clipping the tees, you aren’t making contact in the center of the clubface. Keep practicing until you can hit all of your shots so the clubhead goes through the gate without touching the tees.

HEALTH TIP OF THE WEEK:

A Well-Heeled Summer

Summer can be hard on your feet, but following these simple tips will keep them in tip-top shape. Resist the temptation to walk around barefoot outdoors to avoid injury or infection. Wear proper socks to keep moisture from your feet or, better yet, wear sandals to keep your feet dry. And don’t forget to apply sunscreen to your feet and toes!

GREEN TIP OF THE WEEK:

Turn Things Off

It’s easy to develop a habit of leaving things on. This wastes energy, which contributes to the burning of more fossil fuels and global warming. Instead, develop the habit of turning things off when you don’t use them: lights, air conditioners, water heaters, computers, televisions, etc.

 

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.
Investment advisory services by Calandra Wealth Management, LLC – A Georgia Registered Investment Advisor

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.

 

---

[1]
http://www.bls.gov/news.release/empsit.nr0.htm

[2]
http://www.google.com/finance

[3]
http://www.businessweek.com/ap/financialnews/D9PGDJMG0.htm

[4]
http://www.bls.gov/news.release/empsit.nr0.htm

[5]
http://www.businessweek.com/ap/financialnews/D9PGDJMG0.htm

[6]
http://www.bizjournals.com/dayton/news/2011/09/03/government-sues-17-big-banks-for-mortgag.html

[7]
http://online.wsj.com/article/BT-CO-20110830-705373.html

[8]
http://www.businessweek.com/ap/financialnews/D9PGCNIG0.htm

[9]
http://www.ctpost.com/news/article/70-000-remain-without-power-a-week-after-Irene-2155383.php

Read Full Post »

Weekly Commentary – 8/22/2011 “Driven by Fear”

Weekly Update – August 22, 2011
Driven By Fear

Fear that the economy may be headed for another recession drove markets to their fourth straight session of losses last week. Mounting anxiety has been easy to see in Wall Street’s key measure of volatility, the VIX*, which soared 35% Thursday following a rash of downbeat economic reports. The Volatility index spiked to a close of 42.7 as all three major U.S. stock indexes plummeted. A VIX reading higher than 30 is considered an indicator of heightened fear.[1]

Both stock indexes and the VIX have seesawed in recent trading sessions, and the VIX itself is up over 140% year-to-date.[2] The wild intraday swings and day-to-day movements have been too much for many investors to handle, and many it seems, are taking the ‘sell first, ask questions later’ approach. Is taking such an approach wise?

Admittedly, no one can foretell the future, and past performance cannot be relied upon to predict future results. Even so, when we look back upon the 15 trading days since 1950 in which the S&P 500 Index was down -6% or more in one day (We experienced a 6.66% decline on August 8^th), the performance of the index for the one year that followed averaged 21.25%.[3] For this reason and others, we do not think that now is the time to act rashly by altering your long term investment strategy.

Regarding the economy itself, many analysts believe it will continue to grow, although slowly. Pointing to an increase in an index of leading economic indicators that suggests the economy is expanding slowly, Jonathan Golub, chief U.S. market strategist for UBS commented Thursday, “The market is thinking that we’re going into a recession, but the data is telling you that we’re not.”

We understand that fear can be contagious, but we urge you not to let yourself be overtaken by it. While stocks are currently experiencing a period of volatility, we believe that investors who remain committed to their long-term investment plan may be rewarded over time.

ECONOMIC CALENDAR:                                                                                                                                         Tuesday – New Home Sales                                                                                                                                                       Wednesday –Durable Goods Orders, EIA Petroleum Status Report

Thursday – Jobless Claims

Friday – GDP, Consumer Sentiment, Ben Bernanke Speaks at 10:00AM Eastern

Data as of 08/19/2011	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	-4.69	-10.6	4.45	-2.75	-0.33
Dow	-4.01	-6.56	5.32	-0.99	0.56
NASDAQ	-6.62	-11.7	7.48	1.64	2.54
MSCI EAFE	-5.16	-12.2	1.54	-3.00	1.64
10-year Treasury Note (Yield Only)	2.24	NA	2.58	4.84	4.84

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:

U.S. benchmark oil prices have tumbled since early May, but drivers—and the economy—have yet to feel the full benefit. While crude-oil futures are down 38%, the average price of gas at the pump is down just 9%.[4]

Japan is ready to take action against a further surge in the yen, including market intervention, after the safe-haven Japanese currency hit a post-war record high. Because a strong yen hurts Japanese exporters, the nation’s main economic engine, Japan stepped into the foreign exchange market earlier this month to dump yen for dollars, and Tokyo has signaled that it may do so again.[5]

Libyan rebels raced into the capital city of Tripoli on Sunday and moved close to the center with little resistance as Moammar Gadhafi’s defenses collapsed and his regime appeared to be crumbling fast.[6]

Bank of America Corp. is cutting 3,500 employees this quarter and working on plans that will ax several thousand more jobs, according to The Wall Street Journal and The New York Times, which cited people familiar with the situation. The reports said job cuts at the biggest U.S. bank by assets might exceed 10,000, or about 3.5 percent of its work force.[7]

QUOTE OF THE WEEK:

“Always bear in mind that your own resolution to succeed is more important than any other.”  — Abraham Lincoln
RECIPE OF THE WEEK:

French-Glazed Chicken

From: Better Homes and Gardens

Ingredients:

2 pounds meaty chicken pieces

1/4 cup French salad dressing

2 tablespoons peach jam, large pieces cut up

1 tablespoon water

1 teaspoon dried minced onion or 2 tablespoons finely chopped onion

 

Directions:

1) Remove skin from chicken, if desired. Place chicken pieces in a 13x9x2-inch baking pan.

2) For glaze, stir together the salad dressing, peach jam, water, and onion. Brush the glaze lightly over the chicken.

3) Bake, uncovered in a 375 degree F oven for 45 to 55 minutes or until chicken is tender and no longer pink. Brush with remaining glaze; bake 5 minutes more. Makes 4 servings.

 

GOLF TIP OF THE WEEK:

To improve putting, understand the grain.

Most golfers can gauge the slope and speed of a green, but typically fail to determine grain. Check for grain at the cup. Usually, one side of the cup will be ruffled and the other, smooth. Toward the smooth side is the direction of the grain. Uphill putts into the grain will have to be struck more firmly; downhill putts with the grain need a softer touch.

HEALTH TIP OF THE WEEK:

Handling Sudden Stress

Stress can happen in many different ways, but when we are instantly plunged into a crisis, it is important to manage stress properly so we can think clearly. First, try to put the situation in perspective. Ask yourself; will this matter in a year? If the problem demands your attention, try coming up with a plan by listing possible solutions. Finally, accept that while some circumstances are beyond our control, we always have a choice in how we react. Try to stay calm and accept support from others.

 

GREEN TIP OF THE WEEK:

Think About Packaging

Besides the production and waste of the goods themselves, the packaging of products is hugely wasteful. While shopping, try to look for products that use less packaging than others. Bulk products are often known for this. Avoid styrofoam products and packaging as much as possible, because of the harmful pollutants used to produce them.

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.

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. The named broker/dealer is not affiliated with Platinum Advisor Marketing Strategies, LLC.

 

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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*Chicago Board Options Exchange Market Volatility Index (VIX) – is a popular measure of the implied volatility of S&P 500 index options.  It represents one measure of the market’s expectation of stock market volatility over the next 30 day period.

[1]
http://money.cnn.com/2011/08/18/markets/VIX_fear_index/index.htm

[2]
http://money.cnn.com/2011/08/18/markets/VIX_fear_index/index.htm

[3] www.ftportfolios.com  Performance is price return only. The historical performance figures for the S&P 500 Index are for illustrative purposes only and are not intended to imply or guarantee future performance. These returns were the result of certain market factors and events which may not be repeated in the future. The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance. The index cannot be purchased directly by investors.

[4]
http://online.wsj.com/article/SB10001424053111904279004576522372249187308.html

[5]
http://www.google.com/hostednews/afp/article/ALeqM5gDr09TfDDUjNm_Xv-5rzwofkWXbQ?docId=CNG.3d86055a786fe3f18e93f5587082b5b1.421

[6]
http://www.usatoday.com/news/world/2011-08-20-libya-fighting-rebels_n.htm

[7]
http://www.businessweek.com/ap/financialnews/D9P75J280.htm

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Weekly Commentary – 8/15/2011 “This Too Shall Pass”

“This Too Shall Pass”
Weekly Update – August 15, 2011

A recent article from the New York Times that was reprinted by CNBC, likened the late-2000s recession to an earthquake, and recent volatility to aftershocks. The article said: “Like earthquakes, financial crises seem to be accompanied by aftershocks, like the one we’ve been living through this week. They can feel every bit as bad as the crisis itself. But economic history and academic research suggest they can set the stage for a sustainable recovery — and eventual sharp stock market gains.”[1] We found this to be a particularly fitting illustration, and a valid point.

It’s no secret that dizzying stock market moves in recent weeks have been difficult to stomach. Think of all the events we’ve had to face leading up to this – controversy in Washington over the debt ceiling, Standard & Poor’s downgrade of America’s prized credit rating, renewed fears about European debt, and a gut-wrenching plunge in the stock market. The uncertainty of everything culminated in the wild ride we took last week.

To recap: On Monday the Dow Jones Industrial Average fell almost 635 points, then rose nearly 430 points on Tuesday, only to see another drop of almost 520 points on Wednesday. Helped by some positive earnings results, the Dow soared 423 points Thursday and another 125 points on Friday. By week’s end, the benchmark index had closed at 11,269 and shed only 1.5% for the week.[2] The S&P 500 Index logged similar performance. You might want to take a deep breath after reading this paragraph.

Do we expect a measure of volatility to continue? There is a good possibility that it will, at least for a time. As long as confidence in the global economy and government policymakers remains shaky, markets are likely to be volatile. Even so, we still believe that fundamentals are strong, and we know that successful investing is a long term project undertaken with risk and uncertainty. Equity markets do not move in a straight line, and neither do economic recoveries. Despite being painful, volatile periods like this historically run their course and then come to an end. To quote an ancient proverb, “this too shall pass.”

ECONOMIC CALENDAR:                                                                                             

Monday – Empire State Mfg Survey, Housing Market Index
Tuesday – Housing Starts, Import and Export Prices, Industrial Production

Wednesday –Producer Price Index
Thursday – Consumer Price Index, Jobless Claims, Existing Home Sales, Philadelphia Fed Survey, Leading Indicators                             

Data as of 08/12/2011	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	-1.72	-6.27	8.79	-1.39	-0.10
Dow	-1.53	-2.66	9.20	0.33	0.82
NASDAQ	-0.96	-5.46	14.5	4.38	2.82
MSCI EAFE	-1.56	-7.37	6.98	-1.45	2.06
10-year Treasury Note (Yield Only)	2.56	NA	2.73	4.97	5.02

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:

Italy’s government has approved sharp budget cuts demanded by the European Central Bank despite regional opposition to the move. Italian officials said Friday the austerity measures include $28 billion in cuts next year and $35 billion in 2013.[3]

The number of Americans claiming new jobless benefits fell to a four-month low last week, the Labor Department said in its weekly report, providing a ray of hope for the nation’s battered economy. Initial claims for state unemployment benefits fell 7,000 to a seasonally adjusted 395,000, the Labor Department said, the lowest level since early April. Economists had expected a reading of 400,000.[4]

The tumbling price of crude oil this month and signs of falling fuel demand point to lower U.S. gasoline prices ahead, though consumers will have to wait for savings to trickle down to the pump. After reaching an almost three-year high of $3.97 a gallon in early May, U.S. retail gasoline prices have fallen nearly 30 cents on a combination of lower oil prices and flagging sales in the important summer-driving season.[5]

The Securities and Exchange Commission has asked credit rating agency Standard & Poor’s to disclose who within its ranks knew of its decision to downgrade U.S. debt before it was announced last week, as part of a preliminary look into potential insider trading, people familiar with the matter say.[6]

QUOTE OF THE WEEK:

“Do you want to know who you are? Don’t ask. Act! Action will delineate and define you.” – Thomas Jefferson
RECIPE OF THE WEEK:

Minted Strawberries with White Wine

From: Better Homes and Gardens

Ingredients:

6 cups strawberries

1 cup sugar

2 bunches fresh mint (1-1/2 oz.)

2 to 3 cups dry white wine such as Sauvignon Blanc

Fresh mint sprigs

 

Directions:

1) Halve large berries; leave hulls on a few berries. Place berries in a large bowl; sprinkle with sugar and cover bowl with plastic wrap. Let stand at room temperature at least 1 hour, stirring once or twice.

2) Remove mint leaves from one bunch of mint. Stack 6 to 8 leaves together; roll the stacked leaves. Slice across the roll to create narrow strips. Repeat with remaining leaves. Add the shredded mint to strawberries just before serving.

3) To serve, evenly divide the minted berries and juices among 8 glasses; pour wine over berries until just covered. Garnish with mint sprigs. Makes 8 servings.

 

GOLF TIP OF THE WEEK:

Better Chipping

To be consistent while chipping, you must use the proper body motion. The arms and shoulders should form a triangle in front of the center of the body, and this “triangle” must stay intact throughout the swing. Without the triangle thought, it is easy to overuse the arms and hands.

To create a better chipping stroke, try the following drill:

Towel Under The Arms – Place a small, rolled towel under each arm and practice chipping. This will help you connect your upper arms to your chest. When doing this drill, be sure to keep your head still and to rotate your entire upper body while swinging.

HEALTH TIP OF THE WEEK:

Safe Grilling

Everyone enjoys a summer barbecue, but it’s wise to follow some safety guidelines. To avoid burns, always keep the grill clean, remove all fats, and use wood starters for charcoal. To avoid food poisoning, use proper hygiene by washing your hands and using separate plates for raw and cooked meats. To ensure that meats are fully cooked, check temperatures with a thermometer. Enjoy your BBQ!

GREEN TIP OF THE WEEK:

Green Your Golf Game

Next time you are out on the greens, think about whether your own actions are “green.” If you do use a golf cart, keep it on the designated path and out of environmentally sensitive areas. Discard your trash in marked containers as soon as possible to avoid letting it blow away. Look for opportunities to walk instead of taking a cart. Bonus: you’ll burn more calories and lose weight!

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.

Investment advisory services offered through Calandra Wealth Management, LLC – A Georgia Registered Investment Advisor.

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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[1]
http://www.cnbc.com/id/44130283

[2]
http://www.google.com/finance?q=indexdjx:.dji

[3]
http://www.voanews.com/english/news/europe/Italy-Approves-Cuts-to-Balance-Budget-by-2013-127651063.html

[4]
http://www.nytimes.com/2011/08/12/business/economy/jobless-claims-drop-but-trade-deficit-rises.html

[5]
http://online.wsj.com/article/SB10001424053111903918104576504702739994840.html

[6]
http://www.cnbc.com/id/44099845

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Special Paper: Perspective on the Market Correction

Our Current Perspective on Market Corrections, the Economy, and S&P’s Downgrade   As you are surely aware, following Tuesday’s debt ceiling compromise, attention rapidly shifted to whether the government has what it takes to solve its budget problems. Add to this the fact that Italy is now in the forefront of debt problems in Europe and anemic economic news has been pushing investor sentiment downward, and you have a near-perfect recipe for a stock market correction. And a correction – defined as a 10% drop from recent highs – is exactly what we experienced last week as major indexes erased their gains for the year.[1]  At times like this, we are wise to view events in the proper context and avoid letting brief periods of negativity derail our long-term strategies. Market corrections are not unusual events. From the market lows of July 2010 to the highs of April 2011, the S&P 500 was up over 26% without experiencing a correction. To put that 26% run-up in perspective, the best 20-year time period for the stock market was 1948-1968, and the market only returned an average of 8.4% annually during that period. This illustrates that we were overdue for a correction.[2] If you look at the performance of the S&P 500 for 2010, you will see that there was a 0% return through September 21st due to a 15% peak-to-trough decline during the summer months. Despite that correction, the market went on to return a respectable 15% for the year. Remarkably, the whole annual return of approximately 15% came during the final 14 weeks of the year, demonstrating how quickly markets can drop, and then recover.[3] We saw losses of over 8% within 10 days on two separate occasions just last summer, but as previously mentioned, the year still ended up significantly.[4] If you look at a table of the 10 worst days in the equity markets since 1987, you will see that the 4.3% drop we saw on the Dow last Thursday doesn’t even come close to the 10 worst days which averaged drops of 8.86%.[5] There have been many U.S. equity market downturns over time, varying in length and severity. The most severe downturn marked the start of the Great Depression, where stocks lost over 80% of their value. More recently, stocks lost 50.9% of their value during the 2007-2009 bear market. The recovery period following the Great depression took over 12 years, while we are less than two and a half years into the current recovery, and we don’t know how long it will last. During recovery periods, stocks are prone to sudden declines in value. Unexpected drops in the market can be painful, but they are part of the investment process.[6] The economic data doesn’t portend another recession. Corporate earnings are rising rapidly. With only 80 companies left to report, S&P 500 earnings are up 20% over last year.[7] The jobs picture is improving. Initial jobless claims are at 400,000, down from 478,000 at the end of April,[8] and unemployment fell to 9.1 from 9.2 in July.[9] In addition, the ADP employment report showed 114,000 new private sector jobs in July, which was the 18th consecutive monthly gain.[10] Americans are spending money. Car and truck sales were up 6.9% and chain-store retail sales were up 4.6% in July. Altogether, retail sales appear to have increased by about 0.7% in July.[11] Manufacturing is consistent. The ISM manufacturing index was 50.9 in July, which marks the 24th consecutive month with a reading above 50. A reading above 50 is considered to be in line with 2% or more GDP growth. Where do we stand?  When you combine strong corporate earnings with an improving jobs picture, increasing consumer spending, and consistent manufacturing, it is easy to see that, unlike 2008, we are not in the midst of a financial crisis. The entire U.S. banking system is not on the edge of default. Markets are functioning, governments are borrowing, and volatility in the markets is relatively tame compared with what we saw beginning in 2007. While things may be momentarily slowing, we are not experiencing a meltdown. In the grand scheme of things, the market moves of last week are really not out of the ordinary. Even a one-day selloff similar to what we saw on Thursday is not that unusual. In our assessment, the turmoil of recent weeks reflects the fact that fear is still dominating investor sentiment. Highlighting this, Wall Street’s “fear” gauge – the VIX – jumped almost 36% on Thursday, and eventually ended Friday with a reading of 32.05. Anything above 30 indicates a heightened sense of fear.[12]  What are people afraid of? While there are several factors that could be cited, we believe debt problems domestically and abroad are in the forefront.   What about the European Debt Crisis?     While it is true that European countries have spent themselves into a corner, correcting this mistake could be good for long term growth. While some financial institutions may face losses in the process, the minimal level of European exposure U.S. banks have, makes them well equipped to face this challenge. Our research tells us that the odds of significant damage to the U.S. economic system resulting from European debt failures are very low. Should you be concerned about the S&P downgrade of the U.S. credit rating? While the full implications of the downgrade are not clear yet, we do have some initial observations we would like to share with you. Although S&P downgraded the nation’s bond rating from AAA to AA+, Moodys Investors Service took the opportunity to reaffirm the United State’s AAA rating. The U.S. now has a split rating from the two largest ratings agencies. The third-largest ratings agency, FitchRatings, also agreed with Moody’s AAA rating.[13] In confirming the AAA rating, Moody’s recognized that the budget compromise is a first step toward achieving long-term fiscal improvement. The legislation passed on August 2nd calls for $917 billion in specific spending cuts over the next decade and established a congressional committee charged with making recommendations for achieving a further $1.5 trillion in deficit reduction over the same time period.[14] This downgrade of the U.S. was based, not on an ability to pay bond-holders, but on political mayhem over the debt deal and the potential for further controversy in the years ahead. The Fed will still apply a 0% risk-weighted capital requirement on Treasury debt.[15] This move by the S&P definitely strikes a nerve. America’s credit rating has never been downgraded before and people don’t know what to expect. Even so, if it helps the U.S. get more serious about fiscal responsibility, it could turn out to be a very positive development. In conclusion: Successful investing is a long term project undertaken with risk and uncertainty. Equity markets do not move in a straight line, and neither do economic recoveries. We wish we had the ability to trade every move, but that just isn’t possible. Another thing we know is that fundamentals suggest the market is undervalued and getting more so as it drops. If we decide to sell out when the market is at a low point and buy back in when we see an upturn, we could cause our clients to experience unnecessary losses. Despite being painful, corrections like this historically run their course and then come to an end. We do not think that now is the time to take drastic action. We encourage you to tune out the media fanfare and remember that we have been through much worse. Please try to see recent events in context and do not allow them to disrupt your long term financial objectives. As always, we are here to provide you with clarity, perspective, and support during challenging times like these. Thank you for the confidence you have placed in our abilities. We consider it an honor and a privilege to be good stewards of the assets you have entrusted to our care.

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Market Commentary – August 1, 2011

THE MARKETS:

It’s time to take a deep breath. After all the naysayer news bites and political bickering, it seems a debt deal has finally been made. Even so, the drama continued through last week as stocks and politics both took a wild ride. U.S. indexes extended their losing streak Friday as the Dow and the S&P 500 slid to their worst performance in over a year on fears lawmakers wouldn’t resolve the debt crisis issue.

As we anticipated, in what appeared to end the frustrating stalemate, President Obama announced late Sunday a deal to raise the debt ceiling and dramatically curb federal spending had been reached. “I want to announce that the leaders of both parties, in both chambers, have reached an agreement that will reduce the deficit and avoid default,” Obama said.[i]

A Republican source close to the negotiations told CNN the goal is $3 trillion in savings, and that the deal would include a $2.4 trillion increase in the debt ceiling. The pending agreement would allow the debt ceiling to be raised by enough to last at least through the end of 2012.[ii] Of course, it ain’t over till it’s over, and the proposal still has to be put in front of Congress for a vote.

While it appears a debt-ceiling disaster has been temporarily avoided, we believe it is too early to make a judgment on what the final outcome will be. Right up until the eleventh-hour, republicans and democrats were still wrangling over the details – and you know what they say resides in the details… Whatever happens, we promise to keep you informed.

ECONOMIC CALENDAR:                                                                                             

Monday – ISM Mfg Index, Construction Spending

Tuesday – Motor Vehicle Sales, Personal Income and Outlays

Wednesday –ADP Employment Report, Factory Orders, ISM Non-Mfg Index, EIA Petroleum Status Report

Thursday – BOE Announcement, ECB Announcement, Jobless Claims

Friday – Employment Situation, Consumer Credit

Data as of 07/29/2011	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	-3.92	2.75	17.3	0.21	0.72
Dow	-4.24	4.89	16.0	1.65	1.66
NASDAQ	-3.58	3.90	22.4	6.32	3.58
MSCI EAFE	-2.44	2.80	16.0	0.35	3.10
10-year Treasury Note (Yield Only)	2.96	NA	3.00	4.99	5.10

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. dollar crept off a four-month low versus the yen and edged off a record low on the Swiss franc on Sunday as hopes the U.S. would avert a debt default grew.[iii]

Apple has more cash than Uncle Sam. As the government struggled to reach an agreement on raising the debt ceiling, the U.S. Treasury’s cash balance fell to $74 billion this week. That’s less than the $76 billion that Apple now has in cash.[iv]

The financially struggling U.S. Postal Service expects to say Tuesday it will consider closing 3,653 post offices, mostly in rural areas, an announcement certain to trigger a battle with the targeted communities. Postal officials say the agency, an independent arm of the federal government that is supported mostly by postal fees, has no choice but to downsize as people increasingly click on their computers to communicate and pay bills rather than drop letters in the mailbox.[v]

Foreclosure activity dropped during the first half of the year, compared with the first six months of 2010, in most major U.S. cities, according to a report from RealtyTrac, released on Thursday.[vi]

QUOTE OF THE WEEK:

“Your present circumstances do not determine where you can go; they merely determine where you start.” – Nido Qubein
RECIPE OF THE WEEK:

Blackberry Swirl Pie

From: Better Homes and Gardens
For a delicious dessert that is quick and easy to prepare, try this simple pie recipe.

Ingredients:

1 rolled refrigerated unbaked piecrust

1 8-oz. carton dairy sour cream

3/4 cup sugar

3 Tbsp. all-purpose flour

1/8 tsp. salt

3 cups fresh blackberries or 1 (16-oz.) pkg. frozen blackberries

 

Directions:

1) Preheat oven to 450 degrees F. Let frozen berries stand at room temperature for 15 minutes. Meanwhile, prepare pastry and line 9-inch pie plate. Line pastry with double thickness of foil. Bake 8 minutes. Remove foil. Bake 4 minutes more or until lightly browned. Cool on wire rack. Reduce oven to 350 degrees F.

2) In bowl combine sour cream, sugar, flour, and salt. Add blackberries and gently stir to combine. Spoon into prebaked crust. To prevent overbrowning, cover edge of pie with foil. Bake for 25 minutes (50 minutes for frozen berries). Remove foil. Bake 20 minutes more or until filling is bubbly and appears set. Cool on wire rack for 2 hours. Serve or cover and refrigerate. Makes 8 servings.

GOLF TIP OF THE WEEK:

Lose 5 Strokes in 2 Weeks

If you want to knock some strokes off your score fast, focus on your short game. About half of your shots are struck from within 60 yards of the flag. And yet, most average golfers spend all their time practicing with their driver.

If you want to see a radical improvement in your game within a week or two, you must make a radical change in the way you practice. For two weeks, devote 90 percent of your practice time to chipping and putting and only 10 percent to the full swing.

That’s right – If you want to knock off five strokes, put down the driver, leave your long clubs in the bag, and head for the practice green.

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.

Investment advisory services offered by Calandra Wealth Management, LLC – A Georgia Registered Investment Advisor.

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.

---

[i]
http://news.yahoo.com/obama-congress-reach-debt-deal-003853348.html

[ii]
http://finance.yahoo.com/news/Debt-ceiling-deal-framework-3-cnnm-3325925727.html?x=0&.v=16

[iii]
http://www.reuters.com/article/2011/07/31/markets-forex-idUSL3E7IV0PR20110731

[iv]
http://www.smh.com.au/technology/biz-tech/apple-has-more-cash-than-us-government-20110801-1i6x6.html

[v]
http://online.wsj.com/community/groups/general-forum/topics/do-you-think-all-usps?commentid=2826694

[vi]
http://www.marketwatch.com/story/foreclosure-rates-fall-but-one-city-sees-big-rise-2011-07-28

Read Full Post »

Weekly Market Commentary – July 25, 2011

THE MARKETS: 

less than two weeks until the August 2 deadline for raising the debt ceiling, investor focus has been glued to the debate. Lawmakers have been negotiating ways to cut spending and raise the nation’s borrowing limit for months, but there is still no articulated path forward. Treasury Secretary Timothy Geithner said Sunday on CNN’s State of the Union, “We’re almost out of runway. We’re not nowhere, but we’re almost out of runway.” In the days ahead, markets around the world will be looking for reassurance that the U.S. political system can compromise on solutions for the greater good.

Helping to balance uncertainty in Washington, last week was one of surprisingly positive earnings reports that lifted major indexes to weekly gains. The Dow rose more than 1% and the S&P 500 and Nasdaq more than 2%. Analysts also cited relative progress on both the U.S. debt ceiling issue and the ongoing European debt crisis as partial reasons for the positive results.[1]

This week promises to be a busy one both for stocks and economic reports.180 companies in the S&P 500 are scheduled to report quarterly financial results; the August 2 deadline for raising the debt ceiling is rapidly approaching; and Friday will bring the first official report on second-quarter economic growth.[2]

With everything featured in the headlines right now, we understand that you may have some concerns about how your investments could be affected. Please rest assured that we are closely monitoring all relevant activity and will keep you informed about any steps that need to be taken. At the same time, we would like to reiterate that we do not believe now is the time for drastic action. If you have questions or would like additional information, please feel free to contact us. We are always here to lend a hand.

ECONOMIC CALENDAR:                                                                                                                             

Tuesday – S&P Case-Shiller HPI, Consumer Confidence, New Home Sales

Wednesday –Durable Goods Orders EIA Petroleum Status Report, Beige Book

Thursday – Jobless Claims, Pending Home Sales Index

Friday – Employment Cost Index, GDP, Chicago PMI, Consumer Sentiment

Data as of 07/22/2011	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	2.19	6.95	23.0	1.69	1.11
Dow	1.61	9.53	22.9	3.34	1.99
NASDAQ	2.47	7.76	27.3	8.30	4.09
MSCI EAFE	3.44	5.38	21.5	1.95	3.49
10-year Treasury Note (Yield Only)	2.91	NA	2.93	5.05	5.11

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 dollar fell as U.S. lawmakers failed to agree on raising the nation’s $14.3 trillion debt ceiling. America’s currency weakened against the Swiss franc, yen and euro.[3]

Investors outside the U.S. own $4.51 trillion in U.S. Treasuries, or about 50% of the marketable government debt outstanding, according to the Treasury Department.[4]

Last week marked the first anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Dodd-Frank’s crucial innovation was to identify sources of systemic risk in the banking system, and to provide regulatory tools to lessen the problem. A year after the bill became law, it still has many critics and champions.[5]

Two coordinated terror attacks in Norway have left at least 92 dead. Flags are flying at half-staff and the Army is patrolling the streets in a city that just endured its worst peacetime attack in history. Our thoughts are with them.[6]

QUOTE OF THE WEEK:

“Cheerfulness is the best promoter of health and is as friendly to the mind as to the body. “ – Joseph Addison
RECIPE OF THE WEEK:

Stuffed Cherry Tomatoes

From: Better Homes and Gardens
These bite-size appetizers bring festive summer colors to your table.

Ingredients:

30 cherry tomatoes (1-inch diameter)

1 cup firmly packed fresh basil leaves

1/2 cup firmly packed fresh flat-leaf parsley leaves

1/4 cup pine nuts, toasted

1 large clove garlic, quartered

1/8 teaspoon black pepper

2 tablespoons olive oil

4 ounces goat cheese, crumbled (1 cup)

Fresh basil leaves (optional)

 

Directions:

1) Slice off the very top of each tomato. Cut a thin slice off the bottom of each tomato so they stand level. Scoop out tomatoes from the top using a very small, narrow spoon. Turn upside down on paper towels to drain.

2) For pesto, in a blender container or food processor bowl combine 1 cup basil, the parsley, nuts, garlic, and pepper. Cover and blend or process with several on/off turns until a paste forms, stopping machine several times and scraping the sides. With the machine running slowly, gradually add oil and blend or process to the consistency of soft butter. Transfer to a small bowl and stir in the goat cheese.

3) Spoon pesto mixture into a small self-sealing plastic bag. Snip a very small hole in one corner of the bag. Seal bag. Squeeze pesto into the tomato shells. Place filled tomatoes on a serving plate. If desired, garnish with small basil leaves. Makes 30 tomatoes.

 

GOLF TIP OF THE WEEK:

When and How to Practice

The best time to practice is right after you’ve played, while your body is still warm and the problems you experienced are fresh in your mind.

Even if you only want to go to the range for a workout, it’s a good idea to break down your typical round of golf to see which shots you need to practice the most instead of hitting over and over again with your favorite club. For example, in a regulation round of golf, a scratch player would hit approximately fourteen drives, four fairway woods, four long irons (2, 3, 4), eight medium irons (5, 6, 7), six short irons (8, 9, PW), four chip shots, two bunker shots, and 30 putts for 72.

Based on these numbers, he or she should spend almost half their practice time on the putting green, about a fourth of the time hitting tee shots, and the rest of the time divided among all the others.

Break down your own rounds in a similar way, and you’ll know how to practice effectively.

 

 

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.

Investment advisory services offered by Calandra Wealth Management, LLC – A Georgia Registered Investment Advisor.

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.

 

---

[1]
http://money.cnn.com/2011/07/24/markets/stocks_lookahead/index.htm?iid=HP_LN

[2]
http://www.marketwatch.com/story/investor-hopes-hinge-on-debt-plan-earnings-2011-07-24

[3]
http://www.businessweek.com/news/2011-07-24/dollar-falls-as-talks-on-raising-u-s-debt-ceiling-break-down.html

[4]
http://www.businessweek.com/news/2011-07-24/dollar-falls-as-talks-on-raising-u-s-debt-ceiling-break-down.html

[5]
http://www.ft.com/intl/cms/s/0/7412416c-b610-11e0-8bed-00144feabdc0.html#axzz1T4G9AWIc

[6]
http://www.bloomberg.com/news/2011-07-24/norway-killing-suspect-may-explain-motives.html

Read Full Post »

Special Update – July 18, 2011

THE MARKETS:

Balance the budget; curtail spending; reduce debt – three aspects of simple fiscal management. At one time or another, nearly every American has done these things to keep their financial house in order. Now it’s the government’s turn. Trouble is, the powers that be haven’t agreed on how to do it. Meanwhile, all the posturing in Washington is fueling investor frustrations as experts warn that failing to raise the debt ceiling will have disastrous consequences. Why is this such a complicated issue? And perhaps more importantly, why does immediate action need to be taken?

At a fundamental level, the problem is that the U.S. government spends more money than it takes in (See Chart). In order to cover the bills, it borrows money, thus the national debt. In theory, the debt ceiling is supposed to help Congress control spending, in reality, it isn’t working. Since 1962, the ceiling has been raised 74 times, ten of which have occurred since 2001.[1]

What is the debt ceiling anyway?
It is a limit set by Congress on the amount of debt the federal government can borrow. The limit applies to debt owed to the public (e.g. U.S. bond holders) and debt owed to federal government trust funds such as those for Social Security and Medicare.[2]

How high is the debt ceiling right now? The ceiling is currently set at $14.294 trillion. The country’s accrued debt reached that mark on May 16, 2011. Currently, Treasury Secretary Timothy Geithner is taking various measures to allow the government to continue borrowing until August 2^nd.[3]

What now?
Nobody knows for sure how things are going to play out and the uncertainty is frustrating to say the least. Here are a few of the options that are currently being debated:

1)    Do nothing.
This is not an option we want to see elected. If no action is taken, the Treasury will not have authority to borrow any more money. And since the government borrows to make up the difference between what it spends and what it collects, funds would not be available to pay the country’s bills.

Failure to act would create serious economic repercussions. At a minimum, a default would hurt U.S. bonds, the dollar, and investors’ portfolios. And while a total government shutdown is unlikely, many who depend on government checks – from active-duty soldiers, veterans, and federal workers to name a few – could find their mailboxes empty. Which payments would be delayed is not known, but any choice would cripple parts of the economy and anger many groups of Americans.[4]

2)    Agree on a plan to reduce the budget deficit and national debt.
A package of $4 trillion in spending cuts and revenue increases is widely considered by fiscal experts to be the only way to start reining in the runaway U.S. debt.[5] In this respect, the key issue is not just that a deal be made, but that it qualifies as a long-term solution.

Two key ratings agencies have said they expect policymakers to agree on a plan to meaningfully reduce the debt. Moody’s Investors Services said Wednesday it would likely change its outlook on U.S. debt from “stable” to “negative” unless “substantial and credible agreement is achieved on a budget that includes long-term deficit reduction.”[6]  Standard & Poor’s went farther on Thursday by announcing there is a fifty percent chance it would downgrade the U.S. within 90 days if a credible agreement is not reached.[7]

And while most Americans understand that changes need to be made, the politicians can’t agree on what those changes should be. To quote the president, “The American people are sold” on the idea of balancing spending cuts with tax increases. The problem is members of Congress are dug in ideologically.”[8]

To be fair, deciding where to cut and where to spend is challenging. Take a look at this chart.

 

Even if the government agreed to cut all discretionary spending it wouldn’t make up for half of the deficit. Even eliminating social security and all defense spending would barely cover the deficit. And of course, that can’t be done. So as you see, policy makers have a serious challenge on their hands.

3)    Raise the debt ceiling again.
Most experts agree that policymakers will raise the debt ceiling. If for no other reason, because the consequences of not doing so are too great. If the debt ceiling is breached, interest that the government pays on its debt will rise, pushing the deficit even higher.

Federal Reserve Chairman Ben Bernanke was on Capitol Hill Thursday, warning that failure by Congress to raise the debt ceiling would create “a calamitous outcome.” Global confidence in U.S. Treasuries and the nation’s AAA credit rating are among our nation’s greatest economic assets, and according to Bernanke, “Losing that credit rating would be a self-inflicted wound”.[9] It would also be bad news for the labor market, the Fed chairman explained, which is an area of growing concern since the June jobs report showed hiring slowed to a crawl.  In short, failing to raise the debt ceiling would be bad news all around. 

It is our hope that a combination of efforts involving raising the debt ceiling and implementing a plan to begin reducing the deficit will be agreed upon promptly.

What are we doing in the meantime?
We have determined that it is too risky to try and predict what the outcome of this situation will be, and if we get a prediction wrong, it could cost our clients money. Overall, we have confidence that some sort of agreement will be reached and we do not think now is the time to take drastic action. We realize it may not be especially reassuring for you to hear this, but we believe it is the best choice.

Rather than reacting too conservatively or aggressively, we continue to maintain that a balanced approach to investing, including diversification and maintaining long-term vision, is the best way to weather storms like this. We will, however, keep a close eye on the situation and monitor how any developments have the potential to affect your portfolio.

If you have any questions or concerns, please don’t hesitate to reach out to us. It is a pleasure serving you.

Data as of 07/15/2011	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	-2.06	4.65	20.0	1.29	0.83
Dow	-1.40	7.79	20.5	3.24	1.84
NASDAQ	-2.45	5.16	24.0	7.39	3.38
MSCI EAFE	-2.76	1.87	16.9	1.28	NA
10-year Treasury Note (Yield Only)	3.02	NA	2.98	5.06	5.26

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:

“To laugh often and much; to win the respect of intelligent people and the affection of children…to leave the world a better place…to know even one life has breathed easier because you have lived. This is to have succeeded.” – Ralph Waldo Emerson
RECIPE OF THE WEEK:

Cranberry Sorbet

From: Better Homes and Gardens
Simply cook and puree cranberries, strain, then freeze for a frosty and easy dessert.
It also serves as a palate pleaser between courses.

Ingredients:

1-1/2 cups water

3/4 cup sugar

2 cups cranberries

 

Directions:

1) Line the inside of an 8x4x2-inch loaf pan with plastic wrap; set aside. In a medium saucepan, combine water, sugar, and cranberries. Cook over medium heat until mixture just boils, stirring to dissolve sugar. Remove from heat. Cool slightly. Pour, half at a time, into a blender or food processor. Cover and blend or process until mixture is nearly smooth. Strain through a fine mesh sieve (should have 2 to 2-1/2 cups sieved cranberry mixture).

2) Pour sieved mixture into lined loaf pan. Cover and freeze for 2 hours or until mixture is nearly frozen. Stir well, scraping frozen mixture from sides of pan. Spread mixture evenly. Cover and freeze overnight.

3) To serve, let stand at room temperature for 5 to 10 minutes. Spoon into dessert cups or dishes.

4) Makes 8 to 10 servings.

 

GOLF TIP OF THE WEEK:

Add Some Power

If you would like more power behind your swing, avoid shifting your weight too much. To make sure you make a full turn with the proper weight shift, take your regular stance, then turn and point your right toe to the left. This will restrict your hip-turn and allow your arms to stay wider at the top of your back swing.

A way to practice this is with a ball under your right heel. This, too, will restrict you from turning too much. Just make sure you are in good shape if you try this and be careful to maintain 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!

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

Investment advisory services offered by Calandra Wealth Management, LLC. – A Georgia Registered Investment Advisor.

Opinions, estimates, forecasts and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information contained in this commentary has been obtained from sources that are reliable.

This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.

Diversification does not guarantee against a loss.

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.

 

---

[1]
http://money.cnn.com/2011/01/03/news/economy/debt_ceiling_faqs/index.htm

[2]
http://money.cnn.com/2011/01/03/news/economy/debt_ceiling_faqs/index.htm

[3]
http://money.cnn.com/2011/01/03/news/economy/debt_ceiling_faqs/index.htm

[4]
http://money.cnn.com/2011/07/13/news/economy/debt_ceiling_fallout/index.htm?iid=EAL

[5]
http://money.cnn.com/2011/04/13/news/economy/debt_commission_obama/index.htm?iid=EL

[6]
http://www.moodys.com/research/Moodys-Places-US-Aaa-Government-Bond-Rating-and-Related-Ratings?lang=en&cy=global&docid=PR_221800

[7]
http://www.standardandpoors.com/ratings/articles/en/us/?assetID=1245302886884

[8]
http://www.bloomberg.com/news/2011-07-15/house-to-vote-on-2-4-trillion-debt-increase-spending-cuts.html

[9]
http://money.cnn.com/2011/07/14/news/economy/bernanke_testimony/index.htm?iid=EL

Read Full Post »

Budget & Debt Battles in Washington

Debates rage in Washington over how to deal with the debt ceiling.  Why is this such a complicated issue?  Why does immediate action need to be taken?  What is our position on this matter?

Click Here to learn more!

 

 

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