PEEK OF THE WEEK
September 5, 2017
Leif Hagen & Donna Roberts
The Markets
When it comes to economic
growth, the government doesn’t measure twice. It measures three times.
Last
week, the Bureau of Economic Analysis
revised its initial estimate that the gross domestic product (GDP), which is
the value of all goods and services produced by a country or region, grew by
2.6 percent during the second quarter of 2017. The second estimate indicated
the economy grew by 3.0 percent from April through June. The third and final GDP
estimate for the second quarter will become available near the end of
September.
The New York Times reported:
“If the economy were to sustain the
current pace of expansion, it would be a significant uptick from the 2 percent
annual growth rate that has mostly prevailed since the recovery began. A
difference of a single percentage point may not sound like much, but the stakes
are huge in a $19 trillion economy. The acceleration could also help lift wage
growth, which has been frustratingly slow for years despite steady hiring, a
surging stock market, and rising home prices.”
While second quarter’s growth
spurt was welcome news, it was overshadowed by the devastation wrought by
Hurricane Harvey in Texas and across a swath of the Gulf Coast. Initial
estimates of the property damage inflicted by the storm stand between $30 and
$40 billion, reported Yahoo! Finance.
Historically, hurricanes have
impacted U.S. economic growth and Harvey is likely to be no different. An
economist from Goldman Sachs explained
the usual progression of economic consequences to Yahoo! Finance:
“…major hurricanes in the past have
been associated with a temporary slowdown in retail sales, construction
spending, and industrial production, as well as a pickup in jobless claims…However,
GDP effects are ambiguous, as the level of economic activity typically returns
to its previous trend – or even somewhat above – reflecting a boost from
rebuilding efforts and a catch-up in economic activity displaced during the
hurricane.”
We send our thoughts
and prayers to all of those affected by Hurricane Harvey.
Data as of 9/1/17
|
1-Week
|
Y-T-D
|
1-Year
|
3-Year
|
5-Year
|
10-Year
|
|
Standard & Poor's 500
(Domestic Stocks)
|
1.4%
|
10.6%
|
14.1%
|
7.3%
|
12.0%
|
5.2%
|
|
Dow Jones Global ex-U.S.
|
0.7
|
17.4
|
16.0
|
0.6
|
5.5
|
-0.5
|
|
10-year Treasury Note (Yield
Only)
|
2.2
|
NA
|
1.6
|
2.4
|
1.6
|
4.6
|
|
Gold (per ounce)
|
2.7
|
13.9
|
0.8
|
0.9
|
-4.8
|
7.0
|
|
Bloomberg Commodity Index
|
2.0
|
-2.9
|
3.5
|
-12.1
|
-10.3
|
-6.5
|
|
DJ Equity All REIT Total
Return Index
|
0.7
|
7.0
|
2.2
|
8.5
|
9.7
|
6.5
|
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.
If you don’t live near your parents and older family
members, you may want to learn more about Social Security’s Representative
Payment Program (RPP). The Center for Retirement Research at Boston
College (CRRBC) published a brief
in August that provided some insight into the need for the program:
“Many older individuals with
cognitive impairment, including the vast majority of people with dementia, need
help managing their finances. For retirees receiving Social Security benefits,
the Representative Payee Program can serve as one source of this help. In the
Representative Payee Program, a retiree’s benefit is sent to another person
(often a relative) who spends it on the retiree’s behalf and submits records to
Social Security documenting that the expenditures were in the beneficiary’s
best interest.”
Currently, not many people take
advantage of the program. More than 10 percent of people who are age 65 or
older have dementia, but just 9 percent of that group has a payee.
That doesn’t mean retirees
aren’t getting the help they need. Most are, according to CRRBC. Ninety-five percent of people with dementia have someone to
help – an unimpaired spouse, nursing home staff, or adult children. Two-thirds
have assigned power of attorney to a trusted party.
If your parents are older and
you haven’t talked with them about how to handle issues related to finances and
aging, it may be a good time to open a dialogue. Daily Caring suggests you,
“Approach the conversation around the most important considerations for older
adults: safety, freedom, peace of mind, social connection, and being able to
make choices.”
Weekly
Focus – Think About It
“Best thing about being in your 90s is you’re spoiled
rotten. Everybody spoils you like mad and they treat you with such respect
because you’re old. Little do they know, you haven’t changed. You haven’t
changed in [the brain]. You’re just 90 every place else…Now that I’m 91, as
opposed to being 90, I’m much wiser. I’m much more aware and I’m much sexier.”
--Betty White, American actor and
comedienne
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
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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
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Sources:
