November 22, 2016

Stocks Up, Fed Increase Likely

For the second straight week, the major domestic indexes all ended in positive territory: The S&P 500 was up 0.81%, the Dow increased 0.11%, and the NASDAQ added 1.61%. While American indexes performed well, MSCI EAFE’s international equities declined 1.58%. Stocks are up, fed increase likely. With the long, drawn-out presidential election behind us, investors are beginning to look past politics and pay closer attention to the economic fundamentals. As we’ve shared in recent market updates, the economy shows many signs of strength and growth. In the past few weeks alone: GDP beat expectations. Hourly earnings increased. The Dow reached an all-time high. New unemployment claims hit a 43-year low. Housing starts increased 25.5%. Of course, the economy is far from perfect – and growth is still slower than we’d like – but the overarching message is that the economy is doing well. Thus, we were not surprised this week […]
July 12, 2016

S&P Tests New High on Jobs Surge

S&P Tests New High on Jobs Surge WEEKLY UPDATE – JULY 11, 2016 Markets surged last week after a surprising June jobs report buoyed investor sentiment. The S&P 500 came within a hair of a new record close on the news. For the week, the S&P 500 grew 1.28%, the Dow gained 1.10%, the NASDAQ added 1.94%, and the MSCI EAFE fell 1.76%.[1] Stocks surged after Friday’s better-than-expected June jobs report. The S&P 500 closed Friday at 2,129.90, less than a point from its record closing high of 2,130.82 reached in May 2015.[2]  The rally was broad-based, and we’re happy to see that investors are shaking off global worries by responding to success stories at home. After disappointing April and May jobs reports introduced worries of a labor market slowdown, the June report showed that the economy added 287,000 new jobs last month. Since expectations called for around 165,000 jobs, […]
June 28, 2016
RMD's; retiring early

Why you will never retire!

Why you will never retire! We all have hope and dreams—traveling, relaxing, playing golf every day or for me personally sitting on a beach after a morning of wetting a line (a.k.a. fishing)…basically enjoying the vacation life every day.  Whatever you’re dreaming of could be nothing more than a pipe dream unless you take the necessary steps. According to a recent survey, half the households in America have saved less than $10,000 for their retirement income.  Whether they’re just overspending or planning to live off social security, most people aren’t saving enough to retire plain and simple. So what’s the reason for this trend? 1. We start saving too little too late  Most people spend their years in college and come out in their early 20s. Then they get into their 30s, and they are trying to find that new job, buying their first house, getting married, having babies. Somewhere between their 30s […]
June 20, 2016

Fed Blinks on Brexit Fears – Financially Simple

Fed Blinks on Brexit Fears WEEKLY UPDATE – JUNE 20, 2016 Markets fell on Brexit fears and concerns about the Fed’s dovish statements, giving the Dow its worst week in a month.[1] For the week, the S&P 500 slipped 1.19%, the Dow fell 1.06%, the NASDAQ dropped 1.92%, and the MSCI EAFE lost 2.78%.[2] The big news last week was the Federal Reserve’s decision not to raise interest rates. The decision wasn’t a surprise; just before the announcement, traders had assigned just a 1.9% chance of a June rate increase.[3] Looking at the official statement, we can see that the Fed is concerned enough about a slowdown in the labor market and persistently low economic growth to hold off on raising rates.[4] However, the Fed largely hasn’t changed its forecasts for economic growth or unemployment, indicating that its concerns may be short-term.[5] Is that decision a reflection of the data or a […]
May 31, 2016

Dow, S&P 500 Post Best Week Since March

Dow, S&P 500 Post Best Week Since March WEEKLY UPDATE – MAY 31, 2016 Stocks ended a solid week on a high note ahead of the Memorial Day weekend after statements by Federal Reserve officials boosted expectations of a rate hike this summer. For the week, the S&P 500 gained 2.28%, the Dow rose 2.13%, the NASDAQ increased 3.44%, and the MSCI EAFE added 2.11%. [1] Markets jumped on Fed statements last week after the previous week’s release of minutes from the April Fed meeting fanned expectations of an interest rate hike soon. On Friday, Fed Chair Janet Yellen stated support for an interest rate hike over the next few months, indicating that yes, the Fed is looking hard at a June or July rate increase if data holds.[2]  One measure of the probability of a rate hike at the June meeting rose to 34% after Yellen’s remarks, while bets […]
May 23, 2016

Fed Changes Tune On Interest Rates

WEEKLY UPDATE – MAY 23, 2016 “Fed Changes Tune On Interest Rates”, Stocks closed out a bumpy week mixed, ending a three-week stretch of losses for the S&P 500 and NASDAQ. The Dow, however, extended losses for a fourth straight week for the first time since 2014.[1] For the week, the S&P 500 gained 0.28%, the Dow lost 0.20%, the NASDAQ gained 1.10%, and the MSCI EAFE added 0.16%.[2] Fed Changes Tune On Interest Rates Market reactions to the release of the April Federal Reserve Open Market Committee meeting minutes drove much of last week’s volatility. The official minutes showed that the Fed is moving away from its cautious stance and is open to raising interest rates as soon as June if data points to a solid second quarter.[3] The unexpected hawkishness surprised many investors who weren’t expecting a hike until later this year. However, some professional economists predicted a June hike. […]