Womack
Weekly Commentary
July 31,
2017
The Markets
There was some good
news and some bad news last week.
First, the good news: Thanks to consumer
spending and an upturn in federal government spending, the U.S. economy grew
faster from April through June this year. Gross domestic product (GDP) grew by
2.6 percent during the period, according to the advance estimate for economic
growth. This was an improvement over growth from January through March, when GDP
increased by 1.2 percent.
Now, the bad news: Personal income did not
grow as fast from April through June as it did from January through March. Wages
and salaries grew at a slower pace, as did government social benefits and other
sources of income. The New York Times
wrote:
“Wage growth, however, decelerated despite an
unemployment rate that averaged 4.4 percent in the second quarter. Inflation
also retreated, appearing to weaken the case for the Federal Reserve to raise
interest rates again this year.
‘Although growth is solid, the lack of wage pressure
buys the Fed plenty of time, and works with a very 'gradual' tightening cycle,’
said Alan Ruskin, global head of G10 FX strategy at Deutsche Bank in New York.
‘There is more here for the Fed doves than the hawks.’”
The Federal Reserve Open Market Committee
left rates unchanged at its meeting last week, commenting, “The stance of
monetary policy remains accommodative, thereby supporting some further
strengthening in labor market conditions and a sustained return to 2 percent
inflation.”
The Standard & Poor’s 500 Index finished
the week flat. Yields on 10-year Treasury bonds moved slightly higher.
Data as of
7/28/17
|
1-Week
|
Y-T-D
|
1-Year
|
3-Year
|
5-Year
|
10-Year
|
|
Standard & Poor's 500 (Domestic
Stocks)
|
0.0%
|
10.4%
|
13.9%
|
7.7%
|
12.3%
|
5.3%
|
|
Dow Jones Global ex-U.S.
|
0.2
|
16.3
|
17.1
|
-0.1
|
5.6
|
-0.6
|
|
10-year Treasury Note (Yield Only)
|
2.3
|
NA
|
1.5
|
2.5
|
1.5
|
4.8
|
|
Gold (per ounce)
|
1.3
|
9.1
|
-5.7
|
-1.0
|
-4.8
|
6.7
|
|
Bloomberg Commodity Index
|
1.8
|
-3.5
|
1.3
|
-13.2
|
-10.3
|
-6.8
|
|
DJ Equity All REIT Total Return Index
|
0.4
|
6.3
|
-1.2
|
8.7
|
9.8
|
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.
cooking illiteracy could improve
happiness…What does heavy cream become when you whip it? If you answered ‘whipped
cream,’ try this one: What does whipped cream become when you whip it a little
longer? If you said, ‘butter,’ congratulations! You may possess above average
knowledge of cooking.
You may have heard about the death of the
culinary arts. According to various surveys and news reports, few people today
possess the skills required to boil an egg. In 2014, The Seattle Times reported:
“As cooking has been rendered optional – the
victim of rising restaurant culture, myriad takeout options, and supermarket
sections packed with pre-cut vegetables, shredded cheese, and prepared foods – [cooking
instructors] say cooks are increasingly losing touch with skills considered
basic, or even essential, just a generation or two ago. And that is changing
the way…recipes are developed and written.”
It’s also changing the restaurant industry. An
April 2017 survey from Morgan Stanley
found demand for online order and delivery from restaurants is growing rapidly.
By 2020, digital food delivery may comprise “…40 percent of total restaurant
sales – or $220 billion…compared with current sales of around $30 billion.”
Before you lament the ignorance of today’s
youth, consider the results of seven surveys, completed by Harvard University and the University
of British Columbia, encompassing more than 6,000 respondents in four
countries. The Washington Post
reported:
“Across all surveys, life satisfaction was
typically higher for people who regularly spend money to save time. This was
true regardless of household income, hours worked per week, marital status, and
number of children living at home…working adults in the United States reported
higher life satisfaction if they regularly paid to outsource household tasks
such as cooking, shopping, and general maintenance.”
This may be the new
math. Spending money to increase ‘free’ time equals improved happiness.
Weekly
Focus – Think About It
“Cooking
with kids is not just about ingredients, recipes, and cooking…it's about
harnessing imagination, empowerment, and creativity.”
--Guy Fieri, Founder of Cooking with Kids Foundation
Best regards,
Womack
Investment Advisers, Inc.
WOMACK INVESTMENT ADVISERS, INC.
Oklahoma / Main Office: 1366 E. 15th Street - Edmond, OK 73013
California Office: 4660 La Jolla Village Dr., Ste. 500 - San Diego, CA 92122
Phone (405) 340-1717 - Toll Free (877) 340-1717
Oklahoma / Main Office: 1366 E. 15th Street - Edmond, OK 73013
California Office: 4660 La Jolla Village Dr., Ste. 500 - San Diego, CA 92122
Phone (405) 340-1717 - Toll Free (877) 340-1717
Website: www.womackadvisers.com
* These views are those of Peak Advisor Alliance,
and not the presenting Representative or the Representative’s Broker/Dealer,
and should not be construed as investment advice.
* This newsletter was prepared by Peak Advisor
Alliance. Peak Advisor Alliance is not affiliated with the named broker/dealer.
* Government bonds and Treasury Bills are guaranteed
by the U.S. government as to the timely payment of principal and interest and,
if held to maturity, offer a fixed rate of return and fixed principal
value. However, the value of fund shares
is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than
government bonds but normally offer a higher yield and are subject to market,
interest rate and credit risk as well as additional risks based on the quality
of issuer coupon rate, price, yield, maturity, and redemption features.
* 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.
* All indices referenced are unmanaged. Unmanaged
index returns do not reflect fees, expenses, or sales charges. Index
performance is not indicative of the performance of any investment.
* The Dow Jones Global ex-U.S. Index covers
approximately 95% of the market capitalization of the 45 developed and emerging
countries included in the Index.
* 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 Womack Weekly Commentary please reply to this e-mail
with “Unsubscribe” in the subject line, or write us at megan@womackadvisers.com
Sources:
Comments
Post a Comment