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WOMACK WEEKLY COMMENTARY Renew. Regenerate. Refocus.
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January 16, 2018
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THE MARKETS
Inflation, inflation, where’s the inflation?
The
U.S. Federal Reserve has been raising interest rates in anticipation
of higher inflation.
In
its 2018 forecast, Goldman Sachs indicated it expected to see “a
gradual increase in global core inflation, albeit to levels that are still
below central bank targets in most places.”
At
year-end 2017, Barron’s wrote:
Last
week, data released by the Department of Labor showed U.S.
inflation, as measured by the Consumer Price Index, ticked higher (0.1
percent) during December. With food and energy excluded, the index was up 0.3
percent. Shelter, which reflects the cost of rent, rose the most (0.4
percent). The indices for medical care, new vehicles, used vehicles, and
vehicle insurance all increased during December.
Some
publications are predicting December’s uptick in inflation will lead to a
March rate hike by the Federal Reserve. It’s difficult to say with certainty,
however, until January’s inflation report is released on February 14.
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.
HOW LONG DO YOU WANT TO LIVE? In 2013, the Pew Research Center
asked Americans about the ideal lifespan. More than two-thirds (69 percent)
gave an age between 79 and 100. Four percent wanted to live to be anywhere
from 101 to 120, and another four percent wanted to live beyond 120.
It’s
interesting to note the lifespans named by survey respondents generally
matched to some scientists’ predictions about the hardiness of humans. One of
the authors of a much-debated article in the journal Nature
reported, “It seems highly likely we have reached our ceiling…From now on,
this is it. Humans will never get older than 115.”
A
slew of billionaire investors falls into the dissenting camp. They’re
starting companies and funding research with the goal of making death
optional, reported The New Yorker.
LiveMint wrote:
While
human longevity is interesting to think about, it also has some practical
applications. For instance, the life expectancy chosen for a retirement plan
should be carefully considered. It influences the amount saved, the
investments chosen, and the retirement income withdrawn.
If
you would like to talk about your retirement and how it factors into your
financial plans, give us a call.
Weekly Focus - Think About It
“It’s
paradoxical, that the idea of living a long life appeals to everyone, but the
idea of getting old doesn’t appeal to anyone.”
--Andy Rooney, American journalist 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 Website: www.womackadvisers.com Are you prepared for the eventual market volatility?
Be prepared and have a plan. Watch our new video
above on successful investing, and receive a free report on how much risk you
should be taking.
P.S. Please feel free to forward this commentary to family, friends,
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be added.Womack Investment Advisers, Inc. (WIA) is a registered investment adviser whose principal office is located in Oklahoma. Womack Investment Advisers, Inc. is also registered in the State of California, the State of Illinois, the State of Indiana, and the State of Texas. WIA only transacts business in states where it is properly registered, or excluded, or exempted from registration requirements.
* These views
are those of Carson Group Coaching, and not the presenting Representative or
the Representative’s Broker/Dealer, and should not be construed as investment
advice.
* This newsletter was prepared by Carson Group Coaching. Carson Group Coaching 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 indexes 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. * Stock investing involves risk including loss of principal. * Consult your financial professional before making any investment decision. * To unsubscribe from the Womack Weekly Commentary please reply to this email with “Unsubscribe” in the subject line, or write us at raegan@womackadvisers.com. |
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