PEEK OF THE WEEK
June 11, 2018
Leif Hagen & Donna Roberts
The Markets
G whiz!
Never before
could the Group of 7 (G7) Summit have been mistaken for reality TV.
The generally dignified annual
meeting of leaders from the United States, Canada, France, Germany, Italy,
Japan, and the United Kingdom (along with the heads of the European Commission
and European Council) was a lot more contentious than usual, reported Reuters.
Disagreements about trade were
the reason for heightened tensions among world leaders. At the end of May, the
United States extended tariffs on aluminum and steel imports to U.S. allies.
They had previously been exempted. These countries “account for nearly
two-thirds of the [United States’] $3.9 trillion annual merchandise trade,”
reported The Washington Post.
Retaliation to U.S. sanctions
was fast and furious. Mexico implemented “…a 20 percent tariff on U.S. pork
legs and shoulders, apples, and potatoes and 20 to 25 percent duties on types
of cheeses and bourbon,” reported Reuters.
Canada imposed $16.6 billion in
tariffs on U.S exports of “…steel and aluminum in various forms, but also
orange juice, maple syrup, whiskey, toilet paper, and a wide variety of other
products,” says Reuters.
The European Union has a 10-page
list of goods targeted for sanctions, including bourbon and motorcycles,
reported The Washington Post.
Complaints that U.S. tariffs are illegal also are being filed with the World
Trade Organization.
Difficult relationships with
allies are “expected to complicate U.S. efforts to confront China over trade
practices that the administration regards as unfair,” reports The Washington Post.
Canadian, Mexican, and U.S.
stock markets remained unfazed. Major indices in each country moved higher last
week. Some American indices reached new highs. European markets fared less
well. Markets may be bouncier this week as investors digest the costs and
benefits of trade sanctions.
Data as of 6/8/18
|
1-Week
|
Y-T-D
|
1-Year
|
3-Year
|
5-Year
|
10-Year
|
|
Standard & Poor's 500
(Domestic Stocks)
|
1.6%
|
3.9%
|
14.2%
|
11.1%
|
10.8%
|
7.4%
|
|
Dow Jones Global ex-U.S.
|
0.8
|
-1.6
|
8.7
|
3.7
|
4.0
|
0.2
|
|
10-year Treasury Note (Yield
Only)
|
2.9
|
NA
|
2.2
|
2.4
|
2.2
|
4.0
|
|
Gold (per ounce)
|
0.3
|
0.1
|
2.0
|
3.5
|
-1.3
|
3.8
|
|
Bloomberg Commodity Index
|
-0.5
|
2.1
|
9.5
|
-3.7
|
-7.2
|
-8.6
|
|
DJ Equity All REIT Total
Return Index
|
1.1
|
-1.4
|
3.3
|
7.7
|
8.1
|
7.2
|
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.
the struggle is real. Millennials are
known – and often disparaged – for being innovators and disrupters. According
to Business Insider, the generation
has been credited with ‘killing’ everything from starter homes to napkins.
There’s a reason for that. Millennials are the biggest generation and have
become the world’s most powerful consumer group, reports Financial Times:
“The
coming of age of the world’s 2bn millennials is not only a generational shift,
it is one of ethnicity and nationality. Forty-three percent of U.S. millennials
are non-white, and millennials in Asia vastly outnumber those in Europe and the
U.S. Despite China’s former one-child policy, it has 400m millennials, more
than five times the U.S. figure (and more than the entire U.S. population)
while Morgan Stanley estimates that India’s 410m millennials will spend $330bn
annually by 2020.”
Millennials have different
buying habits and preferences than previous generations. They opt for access
rather than ownership, reports Goldman
Sachs, which has helped fuel the growth of the gig economy’s sharing
services.
As the first digital natives,
Millennials also tend to favor brands that offer the greatest convenience at
the lowest price. The most successful brands have strong social media presence.
Weekly
Focus – Think About It
“Millennials are more aware of
society's many challenges than previous generations and less willing to accept
maximizing shareholder value as a sufficient goal for their work. They are
looking for a broader social purpose and want to work somewhere that has such a
purpose.”
--Michael Porter, Harvard Business School
Professor
Best
Regards,
Leif M. Hagen
Leif M. Hagen, CLU, ChFC
LP Financial Advisor
Securities offered through LPL Financial Inc., Member FINRA/SIPC.
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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.
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Sources:
http://www.barrons.com/mdc/public/page/9_3063-economicCalendar.html (Click on U.S. & Intl Recaps, “Caution sets in”,
then scroll down to the recap chart) (or
go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/06-11-18_Barrons-Global_Stock_Market_Recap-Footnote_5.pdf)
https://www.ft.com/content/194cd1c8-6583-11e8-a39d-4df188287fff
(or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/06-11-18_FinancialTimes-How_Millennials_Became_the_Worlds_Most_Powerful_Consumers-Footnote_8.pdf)
