Affinity "Mark" et Minute

Affinity “Mark” et Minute – June 11, 2015

Investment Commentary – June 10, 2015
Dow – 18,000.40 (6/10/15 close)
S&P 500 – 2,105.20 (6/10/15 close)
10-year Treasury – 2.48% (6/10/15)

The Dow Jones Industrial Average opened higher on Wednesday for the first time in five days and returned to positive territory for the year as a selloff in the equities market took a breather.

Analysts think inflation is starting to make waves again in fixed-income markets. But this time, the action started outside the United States. A report released by the German Federal Statistical Office on June 1 said that the country’s overall consumer price index is expected to rise to a year-over-year rate of 0.7% in May.

A slow upward trend in earnings (despite special factors depressing 4Q 2014 numbers), coupled with low interest rates, still make stocks look attractive in relative terms.

Analysts like cyclical and small cap stocks which are generally favored in a rising interest rate environment.

Headline consumer prices rose 0.1% between March and April (-0.2% y/y), while core CPI inflation firmed slightly to 1.8% y/y. High month-to-month increases in medical and education costs pushed overall costs up while evidence that the housing market is tightening can be seen in shelter costs rising at their fastest pace over the past four months since before the housing bubble popped.

Analysts believe that with large caps more exposed to international revenues, small- and mid-cap stocks may also provide investors more direct exposure to a strengthening U.S. economy.

S&P 500 operating earnings are estimated to be $25.80 for the first quarter of 2015, representing year-over year growth of -5.6%. Lower earnings were mainly due to low oil prices and the strong U.S. dollar. S&P 500 earnings excluding the energy sector grew at 8.5%.

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 investment strategy.

Disclosures:
https://www.oppenheimerfunds.com/advisors/article/the-case-for-domestic-small-caps-and-mid-caps?lnksrc=ILBO1
https://ipro.americancentury.com/en/insights-perspectives/market-news/market-movers.html
https://blog.lordabbett.com/blog.html
https://www.jpmorganfunds.com/cm/Satellite?pagename=jpmfVanityWrapper&UserFriendlyURL=contentdet_module&smID=1159383786125

About the Author: Mark Roberts

In addition to managing clients’ money and giving investment and diversification advice, Mark offers something that “the other guys” don’t - a unique approach to Retirement Tax Strategies and distribution. Time and time again, Mark meets with new clients who tell him they have a great relationship with their financial advisor but have never been offered information on this kind of approach to securing their financial futures. Mark has taken this feedback to heart and works tirelessly to ensure that his strategies focus on taxes and distribution. Mark started selling insurance for a major insurance company right out of high school to help put himself through college. After graduating with a degree in finance, he dove into estate planning on the financial side to set himself apart from other financial advisors. However, as changes were made to estate tax laws over time, Mark shifted his focus to income tax strategies. Mark’s philosophy is “the blue prints are more important than the wall paper or carpet.” The wall paper and carpet represent products like investments and insurance policies, whereas the blue prints represent the strategies. Once strategies that truly fit the client’s needs are put in place, our focus can shift to providing you with the right products. According to Mark, “It doesn’t matter what carpet we use if the walls are not in the right place.” Our approach to money management is designed to generate the largest alpha (quality) with the lowest standard deviation and beta (risk). By doing this, we help provide clients with the highest return on the lowest risk. Generating income for our retirees is also very important. Because withdrawing money from your portfolio hurts the account rather than helping it, our goal is to design income strategies to harm the portfolio the least making the money last longer.

Affinity “Mark” et Minute – June 11, 2015

Affinity “Mark” et Minute – June 11, 2015

Share This Story, Choose Your Platform!

About the Author: Mark Roberts