Peek of the Week
The
Markets
“We
can never know about the days to come, but we think about them anyway…”
--Carly
Simon
Economists
and market analysts have been thinking a lot about the Federal Reserve and the
actions it may take before the end of 2016. Friday’s employment numbers helped
fan the speculative fire. The U.S. Labor
Department reported the unemployment rate remained at 4.9 percent with
151,000 jobs added during August.
The
broad market consensus was 180,000 jobs would be created, according to MarketWatch. The publication cited a
source as saying the report, “…wasn’t strong enough to force the Fed to raise
rates in September, but it also wasn’t weak enough to raise concern about the
U.S. economy or dampen the outlook for corporate earnings. As such it’s a
mildly dovish report…”
Economists
and political leaders also are thinking a lot about the impending British exit
from the European Union (EU). At the G20 Summit – a forum for government and
central bank leaders from 20 countries – British Prime Minister Theresa May
confirmed, “Brexit means Brexit.” However, the BBC reported there remains a general lack of agreement within the
British government about exactly what the country’s relationship with the EU
should be after Brexit.
The
potential effects of Brexit gained some clarity at the G20. The Guardian reported, “…the U.S. wanted
to focus on trade negotiations with the EU and a bloc of pacific nations before
considering a deal with the U.K.” In addition, it reported Japan threatened,
“…a string of corporate exits from the U.K. unless some of the privileges that
come with access to the single market are maintained.”
U.S.
stock markets remained sanguine. The Dow Jones Industrial and Standard &
Poor’s 500 Indices finished the month almost flat. Most stock markets across Europe
finished the month higher.
Data as of 9/2/16
|
1-Week
|
Y-T-D
|
1-Year
|
3-Year
|
5-Year
|
10-Year
|
|
Standard &
Poor's 500 (Domestic Stocks)
|
0.5%
|
6.7%
|
11.9%
|
10.0%
|
13.2%
|
5.2%
|
|
Dow Jones
Global ex-U.S.
|
1.0
|
3.9
|
6.4
|
0.2
|
1.8
|
-0.2
|
|
10-year
Treasury Note (Yield Only)
|
1.6
|
NA
|
2.2
|
2.9
|
2.0
|
4.8
|
|
Gold (per
ounce)
|
0.5
|
24.7
|
16.4
|
-1.6
|
-6.7
|
7.8
|
|
Bloomberg Commodity Index
|
-2.4
|
5.6
|
-6.7
|
-14.3
|
-12.6
|
-7.0
|
|
DJ Equity All REIT Total Return Index
|
1.6
|
15.0
|
27.7
|
16.4
|
14.7
|
6.8
|
S&P 500, Dow
Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested
dividends (gold does not pay a dividend) and the three-, five-, and 10-year
returns are annualized; the DJ Equity All REIT Total Return Index does include
reinvested dividends and the three-, five-, and 10-year returns are annualized;
and the 10-year Treasury Note is simply the yield at the close of the day on
each of the historical time periods.
Sources: Yahoo!
Finance, Barron’s, djindexes.com, London Bullion Market Association.
Past performance
is no guarantee of future results. Indices are unmanaged and cannot be invested
into directly. N/A means not applicable.
We’re devils and
black sheep, and really bad eggs… The
movie, Pirates of the Caribbean, made light of piracy
but maritime crime has a significant economic impact.
About 50 percent of the goods that trade globally travel by sea,
according to the United Nations Conference on Trade and Development (UNCTAD)’s
2014 report, Maritime Piracy. It estimated
the economic costs of piracy – including ransoms, insurance, re-routing ships,
security equipment and guards, naval forces and military operations,
counter-piracy organizations, and other factors – at $7-12 billion in 2010.
During the first half of 2016, however, the cost hit a two-decade
low. The Economist reported:
“The recent decline in global piracy can be attributed in part to
better security on ships. For years, the UN’s International Maritime
Organization discouraged boat owners from arming their crews. Ships tried in
vain to defend against heavily-armed pirates using little more than diligent
watch-keeping and water cannons. In the mid-2000s, facing rising insurance and
ransom costs, shipping companies began employing private security contractors. These
firms are increasingly supplied by “floating armories” to help evade laws that
bar crews from bringing weapons into territorial waters…Better policing of the
high seas has also played a part.”
In 2010, governments and marine insurers identified high-risk
shipping areas. Not long after, floating armories were established and became a
type of temporary agency for armed guards on the high seas. The Economist reported, “At the peak of
Somali piracy in 2012, ship owners would pay about $45,000 per trip for armed
guards.” When they weren’t on a client’s ship, guards returned to the floating
armory until employed by another merchant ship.
Floating armories are experiencing some growing pains, as have
many fledgling industries before them. Piracy is down, and so is demand for
their services.
Weekly Focus – Think
About It
The Federal Election Commission (FEC)
recently sent letters to individuals who have filed to be Presidential
contenders, who may not really be qualified to run. The list of suspect
candidates includes Darth Vader, Jean-Luc Picard, God, Captain Crunch, and
Queen Elsa. A letter sent to H. Majesty Satan Lord of Underworld Prince of
Darkness said:
“It has come to the
attention of the Federal Election Commission that you may have failed to
include an accurate candidate name and an accurate principal campaign committee
under 52 U.S.C. § 30102(e) when you filed FEC Form 2…Furthermore, the
Commission requires the filing to be true, correct, and complete…Additionally,
knowingly and willfully making any materially false, fictitious, or fraudulent
statement or representation to a federal government agency, including the
Federal Election Commission, is punishable under the provisions of 18 U.S.C. §
1001.”
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
we offer Medicare insurance and Part D options with NO COST to work with Leif as
their agent
For more information and resources visit our website at www.HagenFN.com
For more information and resources visit our website at www.HagenFN.com
For Medicare supplement and part D information and
resources, please visit MEDICAREforSENIORS.info
Please FOLLOW and “LIKE US” on FACEBOOK.com/HagenFN
Please Read our Blog @ http://HagenFinancialNetwork.blogspot.com
Please Follow our Tweets on Twitter.com/SafeLeif
Check out this: http://www.MedicareForSeniors.info
* 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
subject line, or write us at: Hagen Financial Network, Inc. 4640 Nicols Road,
Suite 203; Eagan, MN 55122.
Sources:
http://www.barrons.com/mdc/public/page/9_3063-economicCalendar.html (Click on “U.S. and Intl Recaps,” “U.S. rate expectations drive markets,” then
scroll down to the “Global Stock Market Recap” chart) (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/09-06-16_Barrons-Global_Stock_Market_Recap-Footnote_6.pdf)
http://www.economist.com/blogs/graphicdetail/2016/09/daily-chart-1 (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/09-06-16_TheEconomist-High-Seas_Piracy_Hits_a_Two-Decade_Low-Footnote_9.pdf)
http://www.economist.com/news/middle-east-and-africa/21688900-brisk-business-safeguarding-guns-cruisin-guns (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/09-06-16_TheEconomist-Cruisin_with_Guns-Footnote_10.pdf)
#financialadvisorEaganMN
#financialplannerEaganMN #wealthmanagementEaganMN
#hagenfinancialnetwork
