June 22, 2016
The
world’s stock markets took it on the chin last week.
A one-two
punch was delivered with the Federal Open Market Committee (FOMC) meeting
leading and concerns Britain will leave the European Union following.
On Wednesday,
the Federal Reserve confirmed what many had suspected. There would be no June rate
hike. There was unexpected news, too. The Fed lowered its projections for U.S.
growth to 2 percent through 2018. Barron’s reported the stance of
various committee members had shifted from the previous meeting:
“At this
week’s confab, there were seven projections for two increases, to 0.875
percent, and six for a single hike, to 0.625 percent. There also were two
outliers expecting more hikes to above 1 percent. Excluding the highest and
lowest guesses, the “central tendency” was in a range of 0.6-0.9 percent,
according to the Fed’s projections…In March, however, there was a solid
consensus of nine members expecting two hikes to 0.875 percent, and seven
looking for more hikes to over 1 percent. Back then, the single outlier was calling
for just one increase to 0.625 percent.”
In the past,
dovish Fed actions have pushed U.S. stock markets higher; however, stocks were
lower by the end of the day on Wednesday, according to MarketWatch.
Investor reticence
may owe much to concerns about the possibility of a British exit. Experts cited
by Barron’s suggested an EU exit may already be priced into markets
since European bank stocks “have been crushed…with some down 40 percent and
others at lows not seen in years.”
Treasuries and
high-quality government bonds rallied through the end of the week as investors
opted for ‘safe haven’ investments*. On Friday, investors took profits after
eight days of gains and rates pushed slightly higher, reported The Wall
Street Journal.
*US
treasuries may be considered “safe haven” investments but do carry some degree
of risk including interest rate, credit and market risk. They are guaranteed by
the US government as to the timely payment of principal and interest and, if
help to maturity, offer a fixed rate of return and fixed principal value.
ARE
YOU WORTH YOUR WEIGHT IN PLATINUM OR, MAYBE, SAFFRON? Gold
is not the only substance that commands a hefty price per pound. The
Telegraph recently reported on the most valuable materials in the world by
weight and some were quite surprising!
·
Saffron is
the most valuable spice in the world. Most of the world’s saffron comes from
Iran and it can cost as much as $65 a gram, according to The Guardian.
There are almost 454 grams in a pound, putting the value of saffron at $29,510
a pound.
·
Beluga caviar is
mighty expensive. Guinness World Records puts the price at about $34,500
a kilogram. A kilogram is a little more than two pounds.
·
Platinum is
expected to cost about $1,005 an ounce during 2016, according to Kitco.
There are 16 ounces in a pound, putting its per pound value at $16,080.
·
Gold may run about
$1,250 an ounce, or $20,000 a pound, by the end of 2016, according to CNN
Money.
·
White truffles are
“the fanciest tubers in the fungi kingdom,” according to Vox.com. A
four-plus pounder sold for $60,000 at auction in 2014, but more common
varieties sell for about $300 a pound.
·
Venom is pretty
tough to harvest, and it commands a premium price. Snake venom runs about $370
per gram, scorpion venom about $596 per gram, and spider venom comes in at
about $1,342 per gram. Multiply these amounts by 454 and you get (per pound for
each) $167,980 for snake venom, $270,584 for scorpion venom, and $609,268 for
spider venom!
Gram for gram,
there are some things in the world more valuable than gold!
Weekly
Focus – Think About It
“My
father gave me the greatest gift anyone could give
another person, he believed in me.”
another person, he believed in me.”
--Jim Valvano, College basketball player, coach, and
broadcaster
Warm regards from Eagan,
Leif M. Hagen
Leif M. Hagen, CLU, ChFC
LP Financial Advisor
Securities offered through LPL Financial Inc., Member FINRA/SIPC.
P.S. Please feel free to forward this commentary
to family, friends, or colleagues.
P.S.S. Also,
please remind your friends and family members becoming Medicare eligible that
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For more information and resources visit our website at www.HagenFN.com
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* This newsletter was
prepared by Peak Advisor Alliance. Peak Advisor Alliance is not affiliated with
the named broker/dealer.
* The Standard & Poor's
500 (S&P 500) is an unmanaged group of securities considered to be
representative of the stock
market in general. You cannot invest directly in this index.
* The Standard & Poor’s
500 (S&P 500) is an unmanaged index. Unmanaged index returns do not reflect
fees,
expenses, or sales charges.
Index performance is not indicative of the performance of any investment.
* 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.
* Gold represents the
afternoon gold price as reported by the London Bullion Market Association.
The gold price is set twice
daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in
U.S. dollars per fine troy ounce.
* The Bloomberg Commodity
Index is designed to be a highly liquid and diversified benchmark for the
commodity futures market. The Index is composed of futures contracts on 19
physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT
Total Return Index measures the total return performance of the equity
subcategory of the Real Estate Investment Trust (REIT) industry as calculated
by Dow Jones.
* Yahoo! 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.
* Economic forecasts set
forth may not develop as predicted and there can be no guarantee that
strategies promoted will be successful.
* Past performance does not
guarantee future results. Investing involves risk, including loss of principal.
* You cannot invest directly
in an index.
* Consult your financial
professional before making any investment decision.
* Stock investing involves
risk including loss of principal.
* To unsubscribe from the
“Peek of the Week”, please reply to this email with “Unsubscribe” in the
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Sources:
http://www.barrons.com/articles/dow-falls-1-on-brexit-growth-worries-1466226796?mod=BOL_hp_we_columns
(or go to https://s3-us-west-
2.amazonaws.com/peakcontent/+Peak+Commentary/06-20-16_Barrons-Dow_Falls_1_Percent_on_Brexit_Growth_Worries-Footnote_1.pdf)
http://www.barrons.com/articles/fed-acknowledges-reality-rates-are-going-nowhere-1466032816?mod=BOL_hp_highlight_1
(or go to https://s3-us-west-
2.amazonaws.com/peakcontent/+Peak+Commentary/06-20-16_Barrons-Fed_Acknowledges_Reality_Rates_are_Going_Nowhere-Footnote_2.pdf)
http://stream.marketwatch.com/story/markets/SS-4-4/SS-4-110696/
http://www.wsj.com/articles/u-s-government-bonds-pull-back-after-eight-day-rally-1466173428
(or go to https://s3-us-west-
2.amazonaws.com/peakcontent/+Peak+Commentary/06-20-16_WSJ-US_Government_Bonds_Pull_Back_After_Eight-Day_Rally-Footnote_4.pdf)
http://www.telegraph.co.uk/business/2016/05/18/the-most-valuable-substances-in-the-world-by-weight/saffron/
https://www.theguardian.com/world/2016/feb/04/iran-saffron-sales-lifting-sanctions
http://www.asknumbers.com/PoundsToGrams.aspx
http://www.guinnessworldrecords.com/world-records/most-expensive-caviar/
http://www.kitco.com/news/2015-12-22/HSBC-Platinum-To-Average-1-005-Palladium-655-In-2016.html
http://money.cnn.com/2016/02/02/investing/gold-prices-rise-2016/
http://www.vox.com/2016/6/15/11932370/truffles-expensive-costs-thousands
http://www.brainyquote.com/quotes/quotes/j/jimvalvano358465.html?src=t_fathersday
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