Newsletter
Week: March 04, 2013 RESILIENT MARKETS SHRUG OFF CONCERNS
ECONOMIC CALENDAR
Markets stumbled early in the week on concern that Italy’s
deadlocked election results might threaten Europe’s economic
recovery. However, they picked up steam later in the week,
bolstered by strong economic data. While Friday’s sequestration deadline weighed on investor nerves, markets still ended
the week in the black, with the S&P 500 gaining 0.17%, the
Dow gaining 0.64%, and the Nasdaq gaining 0.25%.
Tuesday: ISM Non-Mfg. Index
Wednesday: ADP Employment Report, Factory Orders, EIA
Petroleum Status Report, Beige Book
Thursday: International Trade, Jobless Claims, Productivity
and Costs
Friday: Employment Situation
As many expected, the sequestration deadline came and went
on March 1, demonstrating Washington’s unwillingness to
compromise on either side of the issue. With no deal in sight,
President Obama formally ordered the start of $85 billion in
government spending cuts Friday evening. Markets shrugged
off the sequestration deadline, perhaps trusting that lawmakers will pull themselves together before the full weight of the
cuts are felt. Although spending cuts have been ordered, it will
take time for the gears of government to turn, and the major
effects may not be felt until early April, when the first furloughs
begin.
Data as of
03/01/2013
Standard &
Poor's 500
Fed Chairman Ben Bernanke made several speeches last
week with a clear message: The Fed will keep long-term interest rates low to encourage economic growth. Despite some
dissension in the ranks, the Fed will continue its program of
loose monetary policy while closely monitoring financial markets to curb inflation risks.
Also making headlines last week, the results of Italy’s election
show a close split that leaves the country without a plausible
governing coalition. Voters showed their frustration with austerity measures and lack of economic growth by splitting their
votes among three politicians who are unlikely to hold a political mandate strong enough to confront Italy’s worst recession
since WWII. In order to stave off additional economic trouble,
Italians must be willing to accept serious structural changes in
the future.
Investors reacted positively to a number of economic reports
showing that the U.S. economy is doing well. Despite new
payroll taxes, consumer spending grew a modest 0.2% in
January; this is great news because consumer spending often
drops after the holidays as Americans tighten their belts. In the
housing sector, sales of new homes increased nearly 16% to
the highest level since July 2008. At the same time, sales of
existing homes has fallen but the increasing demand for new
homes has added momentum to the housing recovery.
1-Week
Since
1/1/2013
1-Year
5-Year
10-Year
0.17%
6.45%
10.49%
2.82%
8.05%
DOW
0.64%
7.52%
8.55%
2.97%
7.86%
NASDAQ
0.25%
4.98%
6.05%
7.91%
13.70%
International
-0.67%
2.18%
8.72%
-1.40%
13.69%
Data as of
03/01/2013
1 mo
6 mo
1 yr
5 yr
10 yr
Treasury
Yields
(CMT)
0.07%
0.12%
0.16%
0.75%
1.86%
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year
returns are annualized. Sources: Yahoo! Finance and Treasury.gov. International
performance is represented by the MSCI EAFE Index. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.
CURRENCY
SPOT
EUR/USD
1.3010
SILVER
GBP/USD
1.5052
GOLD
$ 1,577.56/oz
EUR/GBP
0.8644
PLATINUM
$ 1,582.50/oz
USD/CHF
0.9420
USD/JPY
93.55
$ 28.65/oz
HEADLINES
Manufacturing jumps in February. U.S. manufacturing grew
last month at the fastest pace in 20 months, a good sign for
the economy.
Pope Benedict XVI bids farewell. In the first papal retirement
since the 1400’s, Pope Benedict stepped down on Thursday.
Cardinals will convene in Rome to elect the next pope from
among their number.
Continue...
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Newsletter
Week: March 04, 2013 Americans see monthly income drop. Personal income
declined in January by the largest amount in 20 years, hit by a
one-two punch of unusually high December income and January’s new payroll tax. Monthly income was high in December
as companies paid out early dividends to avoid tax hikes. The
new payroll tax took an additional toll, as most workers will
pay an additional 2% in taxes this year.
Consumer confidence jumps in February. Consumer confidence moved higher for the second consecutive month, according to initial readings. The rebound suggests that despite
some uncertainty around budgetary issues, Americans are
adjusting to smaller paychecks and are still feeling optimistic
about the future.
GOLF TIP OF THE WEEK
Try the Logo Lineup
One of the most common errors when putting is poor alignment. Specific sources of trouble can be posture, head position, or ball position. Many golfers have not trained their eyes
to see the line correctly and are aiming their putter to the right
or left of the hole without being aware of it.
QUOTE OF THE WEEK
The next time you head out to play or practice, try experimenting with lining up the logo or marked line. Start by practicing 2 or 3 footers to ensure that your aim is true. If you
have aligned properly, you will see the logo turning straight
over the top of the ball as it falls into the hole. Once you are
comfortable with these short putts, begin to practice from
longer distances.
“Imagination is more important than knowledge.” Albert Einstein
HEALTH TIP OF THE WEEK
Lean Beef is a Superfood
RECIPE OF THE WEEK
Jam Thumbprints
According to AARP, lean beef is an important addition to the
diet since it’s full of iron and zinc, two nutrients that protect
against infections. Plus beef is a great source of the antioxidant selenium, which helps repair cells. To limit fat intake
while maximizing benefits, choose lean cuts of beef and limit
portions to 3 ounces.
Dot basic sugar cookies with delicious jam to create t
his simple treat. Recipe from RealSimple.com.
Ingredients:
1 Roll of store-bought sugar cookies or any basic sugar cookie
dough
1 Jar of your favorite jam or jelly
Directions:
Roll the sugar cookie dough into tablespoon-size balls and
place on baking sheets (do not substitute slice-and-bake
dough).
Make a well in each ball with your thumb. Fill the wells with a
total of 1⁄3 cup apricot jam or raspberry jam.
Bake at 350° F on parchment-lined baking sheets until just
beginning to brown, 15 to 18 minutes.
GREEN TIP OF THE WEEK
Install a Water Filter
Love the taste of clean, filtered water? Add a water filter to
your home tap for clean, safe water without all the waste associated with plastic bottles. While a whole-house filter can
be expensive, over time, it will save the average household
money
over
buying
bottled
water.
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Cool slightly on baking sheets, then transfer to wire racks to
cool completely.
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Newsletter
Week: March 04, 2013 DISCLOSURE
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 Marketing Advisor and not necessarily those of the named representative or named Broker dealer, and should not be
construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is
believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial
advisor for further information.
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SOURCES
http://www.briefing.com/investor/markets/weekly-wrap/weekly-wrap-for-february-25-2013.htm
http://www.usatoday.com/story/money/business/2013/03/02/bernanke-defends-federal-reserve-interest-rates/1958587/
http://www.washingtonpost.com/opinions/italian-elections-reveal-frustrations-among-electorate/2013/03/01/ed35f2ca-82b311e2-8074-b26a871b165a_story.html
http://news.yahoo.com/us-consumer-spending-0-2-percent-january-133724544--finance.html
http://news.yahoo.com/us-home-sales-jump-highest-4-years-150524305--finance.html
http://news.yahoo.com/jump-factory-growth-lifts-hopes-us-economy-215549741--finance.html
http://online.wsj.com/article/SB10001424127887324662404578331822581430246.html
http://money.cnn.com/2013/03/01/news/economy/income-spending-saving/
http://www.bloomberg.com/news/2013‐03‐01/u‐s‐stocks‐trim‐loss‐on‐consumer‐confidence‐manufacturing‐data.html
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