WEEKLY QUOTE
“It is amazing what you can accomplish if you do not care who gets the credit.” – Harry S. Truman
WEEKLY TIP
Think twice about canceling an old whole life insurance policy. If it has sufficient value, you may be able to convert it to a term policy at no charge. *
WEEKLY RIDDLE
It may contain a thousand wheels, yet it never moves despite spending all day in the sun. What is it?
Last week’s riddle:
Three women each have two daughters. They are all having dinner at a cafe. The café has but seven chairs. All the women are seated. How is this possible?
Last week’s answer:
The seven women eating are a grandmother, her two daughters, and her four granddaughters.
HOW WEAK WAS FIRST-QUARTER GROWTH?
Economists have reason to wonder given the latest retail sales, industrial output, and inflation figures. Overall retail purchases fell 0.3% in March, though they rose 0.2% minus auto buying; analysts polled by MarketWatch expected a 0.1% gain for the headline number and a 0.5% gain for the core number. Industrial production slipped 0.6% in March, matching the retreat in February. The Consumer Price Index rose only 0.1% last month while the Producer Price Index declined 0.1%.1
CONSUMERS A BIT LESS UPBEAT
The preliminary April consumer sentiment index from the University of Michigan came in at 89.7 last week, down from 91.0 at the end of March. A year ago, the index stood at 95.9.1,2
CHEAPEST MORTGAGES IN NEARLY 3 YEARS
Freddie Mac’s April 14 Primary Mortgage Market Survey found the average interest rate on a 30-year home loan at 3.58%, a low unseen since May 2013. You can credit demand for Treasuries; the 10-year Treasury yield fell to 1.65% earlier this month.3
STOCKS RISE IN FIRST WEEK OF EARNINGS SEASON
Across April 11-15, the S&P 500 gained 1.62% to a Friday settlement of 2,080.73. Greater weekly gains came for the Nasdaq and Dow; the former rose 1.80%, to 4,938.22, while the latter advanced 1.82%, to 17,897.46.4
|
% CHANGE
|
Y-T-D
|
1-YR CHG
|
5-YR AVG
|
10-YR AVG
|
|
DJIA
|
+2.71
|
-1.19
|
+9.00
|
+6.07
|
|
NASDAQ
|
-1.38
|
-1.45
|
+15.72
|
+11.23
|
|
S&P 500
|
+1.80
|
-1.23
|
+11.53
|
+6.14
|
|
REAL YIELD
|
4/15 RATE
|
1 YR AGO
|
5 YRS AGO
|
10 YRS AGO
|
|
10 YR TIPS
|
0.20%
|
0.07%
|
0.82%
|
2.48%
|
Sources: wsj.com, bigcharts.com, treasury.gov – 4/15/165,6,7,8
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.
Best regards,
Greg R. Solis, AIF®
President and CEO
Bob Medler, CRPC, CMFC, AIF®
Wealth Advisor / Investment Analyst
78-075 Main Street
Suite 204
La Quinta, CA 92253
Office: (760) 771-3339
Fax: (760) 771-3181
www.soliswealth.com
E-Mail: greg.solis@lpl.com
E-Mail: robert.medler@lpl.com
CA Insurance License #0795867
The Wealth Advisors of Solis Wealth Management are also Registered Representatives with and securities and advisory services are offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC
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This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.
Citations.
1 – marketwatch.com/economy-politics/calendars/economic [4/15/16]
2 – sca.isr.umich.edu/ [4/15/16]
3 – reuters.com/article/us-usa-mortgages-freddie-mac-idUSKCN0XB2E0 [4/14/16]
4 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [4/15/16]
5 – markets.wsj.com/us [4/15/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F15%2F15&x=0&y=0 [4/15/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F15%2F15&x=0&y=0 [4/15/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F15%2F15&x=0&y=0 [4/15/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F15%2F11&x=0&y=0 [4/15/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F15%2F11&x=0&y=0 [4/15/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F15%2F11&x=0&y=0 [4/15/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F13%2F06&x=0&y=0 [4/15/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F13%2F06&x=0&y=0 [4/15/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F13%2F06&x=0&y=0 [4/15/16]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/15/16]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/15/16]