Affinity "Mark" et Minute

Affinity “Mark” et Minute – June 18, 2015

Investment Commentary – June 17th, 2015

Dow – 17,935.74 (6/17/15 close) (0.63% YTD)
S&P 500 – 2,100.44 (6/17/15 close) (2.02% YTD)
NASDAQ – 5,064.88 (6/17/15 close) (0.18% YTD)
10-year Treasury – 2.32 % (6/17/15 close)
Gold-1,185 (6/17/2015 close)

Stocks were mixed last week, with China up, the U.S. essentially flat and other developed markets slipping. In the U.S., the Dow Jones Industrial Average inched up 0.27% to 17,898, while the S&P 500 Index rose a modest 0.09% to end the week at 2,094. The Nasdaq Composite Index fared worse, declining 0.33% to 5,051. Meanwhile, the yield on the 10-year Treasury hit a new high for the year, before slipping back and ending the week unchanged at 2.40%.

The Federal Reserve on Wednesday held its benchmark interest rate near zero, but central bankers believe improving U.S. economic growth is likely to warrant one or two interest rate increases before the end of the year. Fed Chairwoman Janet Yellen said the economy has managed to escape the “soft patch” of the first quarter.

Analysts said the labor market is improving and some of the downward pressure on inflation from energy prices is abating, but added that more progress is needed before the central bank would be ready to pull the trigger and raise rates.

Analyst believe that despite disappointing returns due to a stronger dollar in 2014, international exposure is still warranted given growth prospect abroad.

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%.

Investors should look for areas of value within fixed income, such as tax-exempt municipal bonds and high yield bonds. The backup in yields has also returned some value to Treasury Inflation Protected Securities (TIPS).

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.

Sources:
https://www.blackrock.com/investing/insights/weekly-commentary <https://www.blackrock.com/investing/insights/weekly-commentary>
https://www.blackrock.com/investing/insights/weekly-commentary <https://www.blackrock.com/investing/insights/weekly-commentary>
https://www.jpmorganfunds.com/cm/Satellite?pagename=jpmfVanityWrapper&UserFriendlyURL=contentdet_module&smID=1159383786125 <https://www.jpmorganfunds.com/cm/Satellite?pagename=jpmfVanityWrapper&UserFriendlyURL=contentdet_module&smID=1159383786125>
http://www.marketwatch.com/story/fed-keeps-rates-unchanged-as-it-still-eyes-hikes-this-year-2015-06-17?dist=afterbell <http://www.marketwatch.com/story/fed-keeps-rates-unchanged-as-it-still-eyes-hikes-this-year-2015-06-17?dist=afterbell>

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 18, 2015

Affinity “Mark” et Minute – June 18, 2015

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About the Author: Mark Roberts