September
5, 2017
The Markets
When
it comes to economic growth, the government doesn’t measure twice. It measures
three times.
Last week, the Bureau of Economic Analysis revised its initial estimate that the gross
domestic product (GDP), which is the value of all goods and services produced
by a country or region, grew by 2.6 percent during the second quarter of 2017.
The second estimate indicated the economy grew by 3.0 percent from April
through June. The third and final GDP estimate for the second quarter will
become available near the end of September.
The New York
Times reported:
“If
the economy were to sustain the current pace of expansion, it would be a
significant uptick from the 2 percent annual growth rate that has mostly
prevailed since the recovery began. A difference of a single percentage point
may not sound like much, but the stakes are huge in a $19 trillion economy. The
acceleration could also help lift wage growth, which has been frustratingly
slow for years despite steady hiring, a surging stock market, and rising home
prices.”
While
second quarter’s growth spurt was welcome news, it was overshadowed by the
devastation wrought by Hurricane Harvey in Texas and across a swath of the Gulf
Coast. Initial estimates of the property damage inflicted by the storm stand between
$30 and $40 billion, reported Yahoo!
Finance.
Historically,
hurricanes have impacted U.S. economic growth and Harvey is likely to be no
different. An economist from Goldman
Sachs explained the usual progression of economic consequences to Yahoo! Finance:
“…major
hurricanes in the past have been associated with a temporary slowdown in retail
sales, construction spending, and industrial production, as well as a pickup in
jobless claims…However, GDP effects are ambiguous, as the level of economic
activity typically returns to its previous trend – or even somewhat above – reflecting
a boost from rebuilding efforts and a catch-up in economic activity displaced
during the hurricane.”
We send our thoughts and prayers to all of those
affected by Hurricane Harvey.
Data as of
9/1/17
|
1-Week
|
Y-T-D
|
1-Year
|
3-Year
|
5-Year
|
10-Year
|
|
Standard & Poor's 500 (Domestic Stocks)
|
1.4%
|
10.6%
|
14.1%
|
7.3%
|
12.0%
|
5.2%
|
|
Dow Jones Global ex-U.S.
|
0.7
|
17.4
|
16.0
|
0.6
|
5.5
|
-0.5
|
|
10-year Treasury Note (Yield Only)
|
2.2
|
NA
|
1.6
|
2.4
|
1.6
|
4.6
|
|
Gold (per ounce)
|
2.7
|
13.9
|
0.8
|
0.9
|
-4.8
|
7.0
|
|
Bloomberg Commodity Index
|
2.0
|
-2.9
|
3.5
|
-12.1
|
-10.3
|
-6.5
|
|
DJ Equity All REIT Total
Return Index
|
0.7
|
7.0
|
2.2
|
8.5
|
9.7
|
6.5
|
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.
If you don’t live near your parents and
older family members, you may want to
learn more about Social Security’s Representative Payment Program (RPP). The Center for Retirement Research at Boston College (CRRBC) published a brief in August that
provided some insight into the need for the program:
“Many
older individuals with cognitive impairment, including the vast majority of
people with dementia, need help managing their finances. For retirees receiving
Social Security benefits, the Representative Payee Program can serve as one
source of this help. In the Representative Payee Program, a retiree’s benefit
is sent to another person (often a relative) who spends it on the retiree’s
behalf and submits records to Social Security documenting that the expenditures
were in the beneficiary’s best interest.”
Currently,
not many people take advantage of the program. More than 10 percent of people
who are age 65 or older have dementia, but just 9 percent of that group has a
payee.
That
doesn’t mean retirees aren’t getting the help they need. Most are, according to
CRRBC. Ninety-five percent of people
with dementia have someone to help – an unimpaired spouse, nursing home staff,
or adult children. Two-thirds have assigned power of attorney to a trusted
party.
If
your parents are older and you haven’t talked with them about how to handle
issues related to finances and aging, it may be a good time to open a dialogue.
Daily Caring suggests you, “Approach the conversation around the most important
considerations for older adults: safety, freedom, peace of mind, social
connection, and being able to make choices.”
Weekly
Focus – Think About It
“Best thing about being in your 90s
is you’re spoiled rotten. Everybody spoils you like mad and they treat you with
such respect because you’re old. Little do they know, you haven’t changed. You
haven’t changed in [the brain]. You’re just 90 every place else…Now that I’m
91, as opposed to being 90, I’m much wiser. I’m much more aware and I’m much
sexier.”
--Betty White, American
actor and comedienne
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
Are you prepared for
the eventual market volatility?
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*
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.
*
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