Investment Commentary –January 10th, 2017
Market Indices as of Market Close January 10th, 2017
Dow 19,855 (0.47% YTD)
S&P 2,268 (1.43% YTD)
NASDAQ 5,551 (3.13% YTD)
Gold $1,187 (52 Week Low $1,077 High $1,387
OIL $50.83 52 Week Low $35.10 High $55.44
US 10Y Treasury 2.38 52 Week Low 1.32 High 2.64

U.S. stocks finish mixed as Nasdaq climbs to third straight record close
U.S. stocks ended mixed on Tuesday as Nasdaq closed at a record high for a third session while the Dow Jones Industrial Average’s push toward 20,000 was again thwarted. The S&P 500 SPX, +0.00% finished mostly unchanged at 2,268 and the Dow Jones Industrial Average DJIA, -0.16% slipped 31 points, or 0.2%, to close at 19,855. The Nasdaq Composite Index COMP, +0.36% rose 20 points, or 0.4%, to end at 5,551. Jeffrey Gundlach of DoubleLine Capital earlier told Fox Business that U.S. equities seem very expensive and that stocks are likely to rise moderately from the current level but top off around Donald Trump’s inauguration as U.S. president.

2017: Watch Out for New IRA Policies
Stretch IRA for Non Spouse IRA Beneficiary accounts on the chopping block?
For all the political uncertainty surrounding federal spending and tax proposals, one thing appears certain: the money for ambitious fiscal policies will have to come from somewhere, and there is increasing concern that retirees might bear some of the cost.
A popular IRA strategy is already on the endangered list. The Senate Finance Committee on Finance voted unanimously last September to eliminate the “stretch” payout for non-spousal beneficiaries—thereby shortening legacy payouts to heirs.
In other words, the government would collect much-needed revenue sooner. According to some estimates, this rule change would generate an estimated $3.18 billion in revenue between 2017 and 2026.
This change is one of the many retirement plan proposals in legislation called the Retirement Enhancement and Savings Act of 2016. This isn’t the first time the “stretch” has been in the government’s crosshairs: President Obama proposed its elimination in previous budget proposals.
Under current law, government rules on distributions from inherited IRAs are very liberal; a non-spouse beneficiary, for example, has the option of spreading payouts, and thus taxes, over their lifetime expectancy. Thus, the younger the beneficiary, the longer can be the “stretch” or payout

Xi to be first Chinese leader to attend Davos World Economic Forum
President Xi Jinping this month will become the first Chinese head of state to attend the World Economic Forum (WEF) in Davos, which this year will dwell on the rising public anger with globalization and the coming U.S. presidency of Donald Trump.
Xi will take centre stage at the Jan. 17-20 forum with China presenting itself as a champion of globalization.
The Chinese Foreign Ministry on Tuesday confirmed Xi’s widely expected attendance at the annual gathering of global political leaders, CEOs and celebrities in the Swiss Alps.

THIS DAY IN FINANCIAL HISTORY: January 10th, 1980
Labor Leader Lost
AFL-CIO chief George Meany, a longtime union man who oversaw the merger of the AFL and CIO, and in 1957 expelled Jimmy Hoffa and the Teamsters from the organization, died this day in 1980.

AFL-CIO chief George Meany, a longtime union man who oversaw the merger of the AFL and CIO, and in 1957 expelled Jimmy Hoffa and the Teamsters from the organization, died this day in 1980.

The views presented are not intended to be relied on as a forecast, research or investment advice and are the opinions of the sources cited and are subject to change based on subsequent developments. They are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investments.

http://www.marketwatch.com/story/us-stocks-finish-mixed-as-nasdaq-climbs-to-third-straight-record-close-2017-01-10
https://blog.lordabbett.com/blog/2017/01/2017_watch_out_new_ira_policies.html
http://www.reuters.com/article/us-davos-meeting-china-idUSKBN14U11P?feedType=RSS&feedName=businessNews
http://www.econedlink.org/economic-calendar.php?month=1