Category Archives: Individual and Medicare

Understanding the Markets

What the acronyms signify & what affects investors.

Provided by Reeve Conover

Dow. NASDAQ. S&P 500. Fear index. NYSE. Commodity prices. Earnings. Economic indicators. These are the gauges and signposts of investing, but if you stopped most people on the street, you’ll find they have only a hazy understanding of what these terms signify or reference. If you’ve ever been left dizzy by the jargon of the financial world, here is a brief article that may help clarify some of the arcana. Let’s start on Wall Street.

 

The major U.S. indices. The Dow Jones Industrial Average tracks how 30 publicly owned companies trade on a market day – the “blue chips”, 30 titans of U.S. and global business chosen by the Wall Street Journal, most not actually industrial. The NASDAQ Composite records the performance of 3,000+ companies on the NASDAQ Stock Market (see below), including many technology firms. The S&P 500 logs the performance of 500 leading publicly traded companies across ten different sectors (business/industry categories), as determined by financial research giant Standard & Poor’s (there was actually a Mr. Poor, hence the name).1,2

 

At the end of the trading day, these indices settle or “close” at a price level. The Dow is a price-weighted index – that is, its value each trading day rides up or down on the price movements of its 30 components. By contrast, the S&P 500 and NASDAQ (and most other stock indices) are cap-weighted, meaning the index value reflects the total market value of the companies in the index and not simply the prices of individual components. The S&P 500 has both a price return and a total return (the total return includes dividends).1,2

While the nightly news tells everyone what the Dow did today, many seasoned investors pay more attention to the S&P 500, which represents about 70% of the value of the U.S. stock market. There are other indices that also grab Wall Street’s attention. Investors watch the Russell 2000 (which lists the “small caps”, usually newer and younger firms than found in the predominantly “large-cap” S&P 500) and the Wilshire 5000, which tracks stocks of almost every publicly owned company in America (6,000+ components). Eyes are also on the “fear index”, the CBOE VIX (Chicago Board Options Exchange Volatility Index), which measures investors’ expectations of volatility (read: market risk) in the S&P 500 for the next 30 days. Important multinational indices (the MSCI World and Emerging Markets indices, the Global Dow, the S&P Global 100, and many more) and foreign indices (Japan’s Nikkei 225, Germany’s DAX, China’s Shanghai Composite and many others) also get a look.2,3,4,5

 

The stock exchanges. Stocks trade on exchanges, with the most prominent in America being the New York Stock Exchange (NYSE), the “big board” at which celebrities are seen ringing the opening or closing bell. Other notable U.S. stock and securities markets include the American Stock Exchange (AMEX), the CBOE and the NASDAQ Stock Market. While the NYSE trading day runs from 9:30am-4:00pm EST, pre-market and after-hours trading also occurs as investors respond to earnings announced after or before the bell or overseas developments.

The NYMEX, the COMEX & the forex market. The CME Group of Chicago owns and operates the New York Mercantile Exchange (NYMEX), the biggest physical commodities exchange on the planet. The NYMEX tracks energy futures such as oil and natural gas and it also has a COMEX division for metals such as gold, silver and copper futures. (Platinum and palladium futures actually trade on the NYMEX instead of the COMEX.) Agricultural commodity futures and options are traded on the CME Group’s Chicago Mercantile Exchange. Over-the-counter currency trading occurs via the worldwide, decentralized forex (foreign exchange) market. Short-term movements in exchange rates do influence stocks. 6,7

The bond market. Further decentralized trading occurs here, conducted by institutional and individual investors, governments and traders buying, selling and issuing government, corporate and mortgage-linked securities (and other varieties). Bond prices fall when bond yields rise, and vice versa. Interest rate changes affect the bond market more than any other factor; credit rating adjustments and changes in the appetite for risk (i.e., a race to or retreat from stocks by investors) can also play roles.

 

What moves the markets up and down? Information – or more precisely, the way large institutional investors respond to it. Things really move when the equilibrium of the market is upset by either positive or negative breaking news – it could be a geopolitical development, a natural disaster, a central bank decision, a comment from a Federal Reserve official or the Treasury Secretary, it could be many things. It could be earnings reports – corporate earnings are sometimes called the “mother’s milk” of stocks, and when two or three big companies beat estimates, Wall Street may see big gains that day.

 

The markets also respond to an ongoing stream of economic news releases from the federal government and other organizations. Federal Reserve policy announcements (interest rate adjustments, the implementation or cessation of stimulus efforts) get the most attention, and the Labor Department’s monthly employment report finishes second. Other critical monthly releases include the Commerce Department’s consumer spending report, the Bureau of Labor Statistics Consumer Price Index measuring consumer inflation, and monthly reports on existing home sales (from the National Association of Realtors), new home sales (from the Census Bureau) and home values (via the S&P/Case-Shiller Home Price Index).

 

There are other key reports: the occasionally contradictory consumer confidence surveys from the University of Michigan and the Conference Board (the CB poll is more respected, as it surveys 5,000 people; the Michigan poll surveys only 500, but asks many more questions) and the Institute for Supply Management’s monthly purchasing manager indexes assessing the health of the manufacturing and non-manufacturing sectors of the economy (these are simply surveys of purchasing managers at businesses, minus hard data).8,9

Hopefully, this makes things a little less mysterious. It takes a while to get to know the financial world and its pulse, but that knowledge may reward you in tangible and intangible ways.

 

«representativename» may be reached at «representativephone» or «representativeemail».

«representativewebsite»

 

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations.

1 – investorguide.com/article/11617/introduction-to-stock-indexes-djia-and-the-nasdaq-igu/ [1/25/13]

2 – fool.com/school/indices/sp500.htm [6/6/13]

3 – fool.com/school/indices/russell2000.htm [6/6/13]

4 – fool.com/school/indices/Wilshire5000.htm [6/6/13]

5 – investopedia.com/terms/v/vix.asp [6/6/13]

6 – investopedia.com/terms/n/nymex.asp [6/6/13]

7 – cmegroup.com/trading/agricultural/ [6/6/13]

8 – foxnews.com/us/2012/05/29/how-2-us-consumer-confidence-surveys-differ/ [5/29/12]

9 – briefing.com/Investor/Calendars/Economic/Releases/napm.htm [6/3/13]

 

 

 

 

 

 

Where Did Inflation Go?

Presented by Reeve Conover

Shouldn’t it be rising with all this bond buying?

Consumer inflation just hit a 50-year low. So indicates the Federal Reserve’s preferred inflation gauge – the Personal Consumption Expenditures (PCE) price index maintained by the Bureau of Economic Analysis.1

 

Besides tracking consumer inflation, the PCE price index measures household purchases, a major factor in GDP growth. The core PCE index does the same thing without including volatile food and energy prices. The broad PCE index hit 0.74% in May, with core PCE at 1.05% – a new all-time low, breaking the 1.06%  measured in March 1963.1,2

 

Why isn’t QE3 generating more inflation? The Fed is still “printing money” to the tune of $85 billion a month, but the headline PCE index has fallen since last year (it approached 2.0% in early 2012). The Consumer Price Index only advanced 1.1% between May 2012 and May 2013, and that was the smallest annualized gain in the CPI since November 2010; the core CPI only rose 1.7% in that period.1,3,4

 

What is keeping inflation in check? Chalk it up to extraordinary circumstances – and the perception that they will continue. Short-term interest rates are nil and the Fed has told the world that our benchmark interest rate will be at rock-bottom levels until our jobless rate dips below 6.5% or inflation tops 2.5%.4

 

QE1 and QE2 did boost inflation in the short-term; in fact, one of the things that prompted QE2 was the Fed’s concern about deflation in 2010. Yet inflation has lessened since QE3 started.4

 

Three factors may be encouraging disinflation. One, the Fed has repeatedly emphasized that QE3 will not stoke inflation; it has not implied, hinted or communicated that it will let inflation get out of hand or exceed its present 2.0% target. Two, economists, analysts and investors seem to have widespread faith that the Fed can capably fight sudden spikes in the PCE index or the CPI and keep things under control. Three, total government spending (as a percentage of potential nominal gross domestic product) fell about 3% from Q2 2010 to Q1 2013 – and that’s not even taking sequestration into account. That implies reduced demand in the economy.4

 

Psychologically, there is little or no fear of runaway inflation and the prevalent expectation is that there will be low inflation for some time. This psychology may be influencing the current disinflation as well.

 

Also, while the Fed creates money and purchases bonds from banks via its ongoing stimulus, the bulk of that money has turned into bank reserves. Lenders are conservatively sitting on these reserves as they pay interest. Should the Fed boost the interest it pays on them, it will give these banks more reason to maintain them.4

 

When might inflation expectations change? If the Fed were to raise its inflation target, they would change greatly. No one sees that happening anytime soon.

 

Will the Fed taper sooner, or later? With such mild inflation, it might be later. On June 10, Federal Reserve Bank of St. Louis President James Bullard argued for sustaining an “aggressive” stimulus given the “surprisingly low inflation readings” of recent months, markedly below the central bank’s target.5

 

“Inflation in the U.S. has surprised to the downside,” Bullard commented at the International Economic Forum of the Americas in Montreal, later adding that “it hasn’t moved back at all. I am still waiting for that to happen and I am getting a little bit nervous.”5

 

As former Richmond Fed economist Ward McCarthy noted to Bloomberg, “This is an inopportune time to be talking about curtailing [QE3]. They are missing on the inflation mandate.”5

«representativename» may be reached at «representativephone» or «representativeemail».

«representativewebsite»

 

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

 

Citations.

1 – advisorperspectives.com/dshort/updates/PCE-Price-Index.php [5/31/13]

2 – bea.gov/faq/index.cfm?faq_id=518 [6/13/13]

3 – bls.gov/news.release/cpi.nr0.htm [5/16/13]

4 – theatlantic.com/business/archive/2013/06/the-biggest-economic-mystery-of-2013-whats-up-with-inflation/276772/ [6/12/13]

5 – bloomberg.com/news/2013-06-10/fed-s-bullard-says-low-inflation-may-warrant-longer-qe.html [6/10/13]

 

The Bond Bubble – threatening your retirement money…

Sometimes people forget that you can lose money in bonds, and we have recently experienced just that.  The stock market is known for its volatility and the bond market for being, well, “safe” and not volatile.

Two years ago I began warning you about my expectation that the bond fund returns we have been experiencing would not be as high as the past few years and that has now occurred, with negative numbers the last few months.

FINRA “…is sounding alarms about the possibility of a plunging bond values as the economy recovers and interest rates rise.” (Reuters, “Preparing Clients for looming bond risk” June 3, 2013)WHY?  A number of things may be causing this.  In as non-technical terms as I can muster…

The economy is doing much better, so people are moving their money into stocks, which reduces the demand for bonds.  Lowered demand = reduced value.

The government has been shoring up the economy by buying bonds since November 2008 (“Quantative Easing”).  Their goal has been to keep the country out of a deeper recession.  It also kept the demand for bonds higher.  The Fed has now made a lot of noise about “tapering” off that program.

An improving economy, combined with the “tapering” off quantative easing is generally expected to cause a rise in interest rates.  This reduces the value of the bonds currently held in bond funds.

WHAT ELSE COULD HAPPEN?  Well, there are a lot of people that believe we are due for a market pullback.   Here are some recent quotes:

From USA Today – “The Standard & Poor’s 500 Index is up a rarefied 140 percent since the low of March 9, 2009, high enough for many investors to feel among the clouds. That begs the question of when the next big correction will occur.(1)”

 

My crystal ball is broken, and I cannot find a certified repairman…

From Graham Summers in Market Oracle – A short-term market correction would not have a lot of effect on the bond market.  However, a longer-term drop in the market might actually help the Bond Markets.  Some are forecasting such a drop:

“Investors take note… now is the time to be prepping for a market correction.  As Friday’s action showed, when it comes, it’s going to be fast and violent.(2)”

SO WHATS YOUR PLAN?  I agree with the prevailing opinion to pull back into “short-duration” bond funds. Depending on your risk profile, it may be appropriate to add some stock holdings into the mix.

Please give me a call to discuss this.

 

References

1-  USA Today, May 17, 2013, John Morgan “Wall Street Awaits a Stock Market Correction”

2-  Market Oracle, June 3, 2013, Graham Summers, “Fridays Stock Market Drop was just a hint of whats coming”

3- Reuters, June 3, 2013, Suzanne Barlyn, “Preparing clients for looming bond risk”

 

 

How Do You Know When You Have Enough to Retire?

There is no simple answer, but consider some factors.

Provided by Reeve Conover
You save for retirement with the expectation that at some point, you will have enough savings to walk
confidently away from the office and into the next phase of life. So how do you
know if you have reached that point?
Retirement calculators are useful – but only to a point. The dilemma is that they can’t predict your retirement
lifestyle. You may retire on 65% of your end salary only to find that you
really need 90% of your end salary to do the things you would like to do.
That said, once you estimate your income need you can
get more specific thanks to some simple calculations.

Let’s say you are 10 years from your envisioned
retirement date and your current income is $70,000. You presume that you can retire
on 65% of that, which is $45,500 – but leaving things at $45,500 is too simple,
because we need to factor in inflation. You won’t need $45,500; you will need
its inflation-adjusted equivalent. Turning to a Bankrate.com calculator, we
plug that $45,500 in as the base amount along with 3% annual interest
compounded (i.e., moderate inflation) over 10 years … and we get $61,148.1

Now we start to look at where this $61,148 might come
from. How much of it will come from Social Security? If you haven’t saved one
of those mailers that projects your expected retirement benefits if you retire
at 62, 66, or 70, you can find that out via the Social Security website. On the
safe side, you may want to estimate your Social Security benefits as slightly
lower than projected – after all, they could someday be reduced given the
long-run challenges Social Security faces. If you are in line for pension
income, your employer’s HR people can help you estimate what your annual
pension payments could be.

Let’s say Social Security + pension = $25,000. If you
anticipate no other regular income sources in retirement, this means you need
investment and savings accounts large enough to generate $36,148 a year for you
if you go by the 4% rule (i.e., you draw down your investment principal by 4%
annually). This means you need to amass $903,700 in portfolio and savings
assets.

Of course, there are many other variables to consider
– your need or want to live on more or less than 4%, a gradual inflation
adjustment to the 4% initial withdrawal rate, Social Security COLAs, varying
annual portfolio returns and inflation rates, and so forth. Calculations can’t
foretell everything.

The same can be said for “retirement studies”. For example, Aon Hewitt now projects that the average
“full-career” employee at a large company needs to have 15.9 times their salary
saved up at age 65 in addition to Social Security income to sustain their
standard of living into retirement. It also notes that the average long-term
employee contributing consistently to an employer-sponsored retirement plan
will accumulate retirement resources of 8.8 times their salary by age 65.
That’s a big gap, but Aon Hewitt doesn’t factor in resources like IRAs, savings
accounts, investment portfolios, home equity, rental payments and other
retirement assets or income sources.2
For the record, the latest Fidelity estimate shows the
average 401(k) balance amassed by a worker 55 or older at $150,300; the
Employee Benefit Research Institute just released a report showing that the
average IRA owner has an aggregate IRA balance of $87,668.2
Retiring later might make a substantial difference. If you re tire at 70
rather than at 65, you are giving presumably significant retirement savings
that may have compounded for decades five additional years of compounding and
growth. That could be huge. Think of what that could do for you if your retirement
nest egg is well into six figures. You will also have five fewer years of retirement
to fund and five more years to tap employer health insurance. If your health,
occupation, or employer let you work longer, why not try it? If you are married
or in a relationship, your spouse’s retirement savings and salary can also help.
Can anyone save too much for retirement? The short answer is “no”, but occasionally you notice
some “good savers” or “millionaires next door” who keep working even though
they have accumulated enough of a nest egg to retire. Sometimes executives make
a “golden handshake” with a company and can’t fathom walking away from an
opportunity to greatly boost their retirement savings. Other savers fall into a
“just one more year” mindset – they dislike their jobs, but the boredom is
comforting and familiar to them in ways that retirement is not. They can’t live
forever; do they really want to work forever, especially in a high-pressure or
stultifying job? That choice might harm their health or worldview and make
their futures less rewarding.

So how close are you to retiring? A chat with a financial professional on this topic
might be very illuminating. In discussing your current retirement potential, an
answer to that question may start to emerge.

This material was prepared by MarketingLibrary.Net Inc., and does
not necessarily represent the views of the presenting party, nor their
affiliates. All information is believed to be from reliable sources; however we
make no representation as to its completeness or accuracy. Please note –
investing involves risk, and past performance is no guarantee of future
results. The publisher is not engaged in rendering legal, accounting or other
professional services. If assistance is needed, the reader is advised to engage
the services of a competent professional. This information should not be
construed as investment, tax or legal advice and may not be relied on for the purpose
of avoiding any Federal tax penalty. This is neither a solicitation nor
recommendation to purchase or sell any investment or insurance product or
service, and should not be relied upon as such. All indices are unmanaged and
are not illustrative of any particular investment.

 

Citations.

1 – bankrate.com/calculators/savings/simple-savings-calculator.aspx
[5/30/13]

2 – marketwatch.com/story/how-to-know-if-you-have-enough-to-retire-2013-05-25
[5/25/13]

Monthly Economic Update for June 2013

THE MONTH IN BRIEF

May brought more record closes for the Dow, more
affirmations of the housing comeback, more household confidence, and certainly
more volatility as investors wondered if the Federal Reserve might soon do
less. The major concern of the month was how quickly and dramatically the Fed might
wind down its easing effort. Commodities struggled against a strengthening
dollar; domestic indicators were a mixed bag. Still, there was enough optimism to
send the S&P 500 2.08% higher for the month.1

DOMESTIC ECONOMIC HEALTH

The May 1 Fed policy minutes (released May 22) stated that “a number”
of Fed officials were open to reducing the scale of QE3 as soon as June. As
easing has driven this bull market perhaps more than any other factor, this unnerved
Wall Street. If economic indicators improved in spring, would the Fed stimulus
diminish?2

As it happened, some key economic indicators
faltered. Consumer spending slipped 0.2% in April (consumer incomes were flat
in that month), and the closely watched Institute for Supply Management manufacturing
PMI hit its lowest level in four years in May  – 49.0, indicating sector contraction. The
Labor Department said the economy generated 165,000 new jobs in April, in line
with the decent but unspectacular hiring growth seen in the past year (169,000
new jobs per month); unemployment ticked down to 7.5%.3,4

What really improved in May was consumer
confidence. The Conference Board’s May poll rose to 76.2 from the 68.1 reading
in April; the final May consumer sentiment survey from the University of
Michigan came in at 84.5, improved from a preliminary May mark of 83.7. Ongoing
headlines about new record highs for the Dow may have helped.5

Consumer prices declined in April, and that may
have cheered households up as well. The Consumer Price Index fell 0.4%, the
biggest monthly retreat since December 2008. (It had fallen 0.2% in March.) The
take-home pay of Americans rose 0.5% in April, and retail sales edged up 0.1%. Annualized consumer inflation
– as measured by the overall CPI – was a very weak 1.1% in April. (That was the
tamest since September 2010.) Wholesale inflation also lessened in
April – the
Producer Price Index sank 0.7%, the most in three years. Durable goods orders
rose 3.3% for April, 1.3% with the volatile transportation category factored
out.6,7,8

GLOBAL ECONOMIC HEALTH

Eurozone manufacturing rebounded strongly in May. The
overall eurozone Markit PMI improved 1.6 points to 48.3, a 15-month peak;
Germany’s PMI improved to 49.4, Spain’s to 48.1 (a 24-month high) and France’s
to 46.4 (a 13-month high). Still, the big picture saw manufacturing contracting
in the euro area for the 22nd straight month. Economists polled by Markit also
projected the bloc’s GDP at -0.2% for Q2, which would match the retreat of Q1
and mark the seventh quarter in a row without economic growth in the region.
The European Central Bank lowered its benchmark interest rate to 0.5% last
month.9,10

Manufacturing shrank in most of the key Asian economies as well. The exception? Japan.
Markit’s PMI for that nation rose 0.4 points to 51.5 for May. China’s official
PMI came in at 50.8, but the Markit PMI dropped 1.2 points to 49.2, the first
contraction in seven months (a development which threw a shock into Japan’s
stock market and weighed on other exchanges). Taiwan’s PMI descended to 47.1,
India’s to 50.1 (poorest since March 2009), South Korea’s to 51.1, Vietnam’s to
48.8 and Indonesia’s to 51.6.11,12

WORLD MARKETS

European indices generally moved north in May; benchmarks in the Asia Pacific region
(and elsewhere in the Americas) had a tougher time of it. In the plus column:
KOSPI, +1.89%; Sensex, +1.31%; Shanghai Composite, +5.63%; TSE 50, +1.18%; TSX
Composite, +1.56%; CAC 40, +2.38%; FTSE Eurofirst 300, +1.29%; DAX, +5.50%;
FTSE 100, +2.38%. In the minus column: Bovespa, -4.30%; Bolsa, -1.60%; Nikkei
225, -0.62%; Hang Seng, -1.52%; All Ordinaries, -4.93%; Micex, -3.02%; MSCI
Emerging Markets, -2.94%; MSCI World, -0.28%.i COmposite : the TSX Composite (-2.30%), the  gan’13,14

COMMODITIES MARKETS

The U.S. Dollar Index rose 1.63% in May, so it was not exactly a banner month for
the broad commodities market. May saw descents for gold (6.06%), silver (8.14%),
platinum (2.98%), natural gas (8.33%), oil (1.63%), cocoa (5.64%), wheat (2.46%),
corn (3.11%), coffee (5.79%) and sugar (5.32%). Copper did manage an advance of
2.40% in May.15,16

REAL ESTATE

May brought a significant jump in home loan
rates. In Freddie Mac’s May 2 Primary Mortgage Market Survey, the average interest
rate on the 30-year FRM was 3.35%; by the May 30 survey, it had hit 3.81%. This
mirrored what happened to the 15-year FRM – interest rates on that loan type averaged 2.56%
on May 2, 2.98% by May 30. Average interest rates for 5/1-year ARMs rose 0.1%
to 2.66% in the same interval while rates on1-year ARMs
actually descended a bit, going from 2.56 to 2.54%.20

LOOKING BACK…LOOKING FORWARD

The small caps stood tall in May: the Russell 2000 surpassed the 1,000 mark for the first
time. It gained 3.87% on the month, ending May at 984.15. As these numbers show,
investors didn’t exactly sell and go away last month. Another notable
development: the real yield of the 10-year note was nearly back in positive
territory at the end of May.1,21

Historically speaking, June has not been a good month for stocks – on average, the S&P
500 has gone -0.30% in June since 1945. As recently as late May, analysts were
wondering if a pullback (or a correction) was in the offing, as even moderately
good economic data might encourage Fed officials to taper off easing. How
things changed in a week: the subpar ISM manufacturing index reading and
retreat in personal spending were bad news, but encouraging developments for a
stock market worried that the Fed might perceive the economy as stronger rather
than weaker. One of the more ardent Wall Street bulls, S&P’s Sam Stovall,
just noted that “the S&P 500’s performance in June could surprise to the
upside,” referencing that since 1945, the index has averaged a 0.4% gain in the
month following a 7-month winning streak. Even the much-respected “Dr. Doom”,
economist Nouriel Roubini, believes Wall Street will see two more years of
gains – he said so on CNBC at the start of this month. June may prove a wild
card; it may bring more volatility than previous months as investors watch for
any little hint of what the Fed might do, how the labor market is faring, how
the service and manufacturing sectors are holding up this spring, and how
freely consumers are spending and buying. For the record, the next Fed policy meeting
wraps up on June 19.23,24
UPCOMING ECONOMIC RELEASES: The data stream
for the rest of the month is as follows … the ISM May non-manufacturing index
and a new Fed Beige Book (6/5), the Labor Department’s May jobs report (6/7), April
wholesale inventories (6/11), May retail sales ad April business inventories (6/13),
May’s PPI and industrial output and the University of Michigan’s initial June
consumer sentiment survey (6/14), June’s NAHB housing market index (6/17), May’s
CPI and data on May housing starts and building permits (6/18), a Federal
Reserve policy announcement (6/19), May existing home sales (6/20), the
Conference Board’s June consumer confidence survey, the April Case-Shiller home
price index, April’s FHFA housing price index and the numbers on May new home
sales and durable goods orders (6/25), the final estimate of Q1 GDP (6/26), the
Commerce Department’s May consumer spending report and NAR’s pending home sales
report for May (6/27), and then the final University of Michigan consumer
sentiment survey for June (6/28).

 

«RepresentativeDisclosure»

This material was prepared by
MarketingLibrary.Net Inc., and does not necessarily represent the views of the
presenting party, nor their affiliates. Marketing
Library.Net Inc. is not affiliated with any broker or brokerage firm that may
be providing this information to you. This information should not be construed
as investment, tax or legal advice and may not be relied on for the purpose of
avoiding any Federal tax penalty. This is not a solicitation or recommendation
to purchase or sell any investment or insurance product or service, and should
not be relied upon as such. The Dow Jones Industrial Average is a
price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ
Composite Index is an unmanaged, market-weighted index of all over-the-counter
common stocks traded on the National Association of Securities Dealers
Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an
unmanaged group of securities considered to be representative of the stock
market in general. It is not possible to invest directly in an index. NYSE
Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock
Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago
Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading
provider of securities listing, trading and market data products and services.
The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical
commodity futures exchange and the preeminent trading forum for energy and
precious metals, with trading conducted through two divisions – the NYMEX
Division, home to the energy, platinum, and palladium markets, and the COMEX
Division, on which all other metals trade. The Global Dow? is a 150-stock index
of the most innovative, vibrant and influential corporations from around the
world. The KOSPI Index is a capitalization-weighted index of all common shares
on the Korean Stock Exchanges. The BSE SENSEX (Bombay Stock Exchange Sensitive
Index), also-called the BSE 30 (BOMBAY STOCK EXCHANGE) or simply the SENSEX, is
a free-float market capitalization-weighted stock market index of 30
well-established and financially sound companies listed on the Bombay Stock
Exchange (BSE). The SSE Composite Index is an index of all stocks (A shares and
B shares) that are traded at the Shanghai Stock Exchange. The FTSE TWSE Taiwan
50 Index was launched on October 29, 2002 and covers the top 50 companies in
Taiwan by total market capitalization. The S&P/TSX Composite Index is an
index of the stock (equity) prices of the largest companies on the Toronto
Stock Exchange (TSX) as measured by market capitalization. The CAC-40 Index is
a narrow-based, modified capitalization-weighted index of 40 companies listed
on the Paris Bourse. The FTSEurofirst 300 Index is part of the FTSEurofirst
Index Series and the FTSEurofirst 300 Indices, which are tradable indices
measuring the performance of European portfolios. The DAX 30 is a Blue Chip
stock market index consisting of the 30 major German companies trading on the
Frankfurt Stock Exchange. The FTSE 100 Index is a share index of the 100
companies listed on the London Stock Exchange with the highest market
capitalization. The Bovespa Index is a gross total return index weighted by

traded volume & is comprised of the most liquid stocks traded on the Sao
Paulo Stock Exchange.  The Mexican Stock
Exchange (Spanish: Bolsa Mexicana de Valores, BMV; BMV: BOLSA) is Mexico’s only
stock exchange. Nikkei 225 (Ticker: ^N225) is a stock market index for the
Tokyo Stock Exchange (TSE). The Nikkei average is the most watched index of
Asian stocks. The Hang Seng Index is a freefloat-adjusted market
capitalization-weighted stock market index that is the main indicator of the
overall market performance in Hong Kong. The All-Ordinaries Index is the most
quoted benchmark for Australian equities, comprised of common shares from the
Australian Stock Exchange. Moscow Exchange is the largest stock exchange in
Russia, located in Moscow, trading equities, bonds, derivatives and currencies.
It was officially established on 19 December 2011 through the merger of the two
largest Moscow-based stock exchanges, the Moscow Interbank Currency Exchange
and the Russian Trading System. The MSCI Emerging Markets Index is a
float-adjusted market capitalization index consisting of indices in more than
25 emerging economies. The MSCI World Index is a free-float weighted equity index that
includes developed world markets, and does not include emerging markets. The US
Dollar Index measures the performance of the U.S. dollar against a basket of
six currencies. Additional
risks are associated with international investing, such as currency
fluctuations, political and economic instability and differences in accounting
standards. This material represents an assessment of the market environment at
a specific point in time and is not intended to be a forecast of future events,
or a guarantee of future results. Past performance is no guarantee of future
results.  Investments will fluctuate and
when redeemed may be worth more or less than when originally invested. All
information is believed to be from reliable sources; however we make no
representation as to its completeness or accuracy. All economic and performance
data is historical and not indicative of future results. Market indices
discussed are unmanaged. Investors cannot invest in unmanaged indices. The
publisher is not engaged in rendering legal, accounting or other professional
services. If assistance is needed, the reader is advised to engage the services
of a competent professional.

 

Citations.

1 – cnbc.com/id/100779852
[5/31/13]

2 – reuters.com/article/2013/05/22/markets-usa-stocks-idUSL2N0E321R20130522
[5/22/13]

3 – marketwatch.com/Economy-Politics/Calendars/Economic
[6/3/13]

4 – ncsl.org/issues-research/labor/national-employment-monthly-update.aspx
[5/3/13]

5 – briefing.com/investor/calendars/economic/2013/05/27-31
[5/31/13]

6 – businessweek.com/news/2013-05-16/consumer-prices-in-u-dot-s-dot-dropped-more-than-forecast-in-april
[5/16/13]

7 – usatoday.com/story/money/business/2013/05/13/april-retail-sales/2154725/
[5/13/13]

8 – thestreet.com/story/11933260/1/sp-poised-for-three-day-losing-streak-amid-qe-wind-down-chatter.html
[5/24/13]

9 – bbc.co.uk/news/business-22752897 [6/3/13]

10 – markit.com/assets/en/docs/commentary/markit-economics/2013/jun/EZ_Manufacturing_ENG_1306_PR.pdf
[6/3/13]

11 – markit.com/assets/en/docs/commentary/markit-economics/2013/jun/Asia_trade_13_06_3.pdf
[6/3/13]

12 – reuters.com/article/2013/06/01/us-china-economy-pmi-idUSBRE95001W20130601
[6/1/13]

13 – markets.on.nytimes.com/research/markets/worldmarkets/worldmarkets.asp
[5/31/13]

14 –
mscibarra.com/products/indices/international_equity_indices/gimi/stdindex/performance.html
[5/31/13]

15 – online.wsj.com/mdc/public/npage/2_3050.html?mod=mdc_curr_dtabnk&symb=DXY
[5/1/13]

16 – money.cnn.com/data/commodities/
[5/31/13]

17 –
csmonitor.com/Business/new-economy/2013/0523/New-home-sales-rise-but-market-still-a-long-way-from-normal
[5/23/13]

18 – realtor.org/news-releases/2013/05/april-existing-home-sales-up-but-constrained
[5/22/13]

19 – latimes.com/business/money/la-fi-mo-housing-starts-construction-building-permits-economy-20130516,0,7678305.story
[5/16/13]

20 – freddiemac.com/pmms/ [5/30/13]

21 –
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F31%2F12&x=0&y=0
[5/31/13]

21 –
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F31%2F12&x=0&y=0
[5/31/13]

21 –
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F31%2F12&x=0&y=0
[5/31/13]

21 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F30%2F03&x=0&y=0
[5/31/13]

21 –
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F30%2F03&x=0&y=0
[5/31/13]

21 –
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F30%2F03&x=0&y=0
[5/31/13]

22 –
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[6/3/13]

23 – businessweek.com/printer/articles/520656?type=bloomberg [6/3/13]

24 – cnbc.com/id/100785848 [6/3/13]

October 2018
M T W T F S S
« Sep    
1234567
891011121314
15161718192021
22232425262728
293031  

Sign Up To Our Newsletter

Reeve Conover is a Registered Representative. Securities offered through Cambridge Investment Research, Inc., a Broker/dealer member FINRA/SPIC. Cambridge and Conover Consulting are not affiliated. Licensed in SC, NC, NY, CT, NJ, and CA.
FINRA.org - SIPC - Brokercheck