Womack Investment Advisers

WOMACK WEEKLY COMMENTARY Renew. Regenerate. Refocus. March 26, 2018   THE MARKETS Why am I saving and investing? After a week like last week, it’s an important question. There are many reasons people save and invest, including to: • Live the life they want today and in the future • Accumulate resources so they’re prepared for any bumps in the road • Provide an education for their children • Offer assistance to parents • Support a young person with a disability • Do good in the world • Live comfortably in retirement without anxiety However, none of these reasons have anything to do with short-term market fluctuations. Last week, major U.S. stock indices experienced a selloff, and we saw a dramatic downturn in stock markets. The Dow Jones Industrial Average was down 5.7 percent, the Standard & Poor’s 500 index lost 6 percent, and the NASDAQ fell 6.5 percent, reported Barron’s . Those are big moves for a single week. T...

Do you have at least $10,000 saved for retirement?  If so, congratulations, you’ve managed to put away more than 40% of all working-age Americans.  A recent survey from Bankrate.com found that despite the brisk jobs market and increasing wages, Americans still aren’t saving much.  Only 16% of survey respondents stated they saved at least the recommended 15% of their earnings, while 40% report saving none to just 5%.  Mark Hamrick, senior economic analyst at Bankrate stated that while the economy might be prospering now, it won’t last forever.  “With a steady, significant share of the working population saving nothing or relatively little, it's virtually guaranteed that they'll be unable to afford a modest emergency expense or finance retirement," Hamrick said.  The main reason American’s aren’t saving?  Expenses.  It seems obvious that “Expenses” would be a prime reason for not saving among those on the lower rungs of the income ladder, but sho...

WOMACK WEEKLY COMMENTARY Renew. Regenerate. Refocus. March 19, 2018 THE MARKETS It’s a good time for a gut check. Last week, after sliding lower for four days, the Standard & Poor’s 500 Index recouped some of its losses on Friday. The reasons behind the week’s poor showing were diverse. Barron’s reported: “The market is so discombobulated right now that it can’t even decide what it’s afraid of. What do we mean? When the Standard & Poor’s 500 index suffered its first correction since the beginning of 2016 last month, the cause was easily identified – a good old-fashioned inflation scare caused by a larger-than-expected increase in wages and a rapidly rising 10-year Treasury yield, which almost hit 3 percent…Fast-forward more than a month and those fears seem almost quaint.”  Those fears included: Special Counsel Robert Mueller’s subpoena of the Trump Organization. The effects of recent tariffs and the possibil...

As the number of jobs created by the U.S. economy blew away Wall Street expectations, one of the most notable aspects of the report was the strong rebound in the construction industry.  Last month over 60,000 jobs were created and the sector has added 185,000 jobs over the past four months.  The rebound in construction bodes well for the U.S. economy as the housing market is a key pillar in the strength of the overall economy.  On the other hand, the billionaires in Silicon Valley actually subtracted from employment gains, with a net loss of 12,000 jobs in the “Information” category.