WEEKLY QUOTE
“True knowledge exists in knowing that you know nothing.” – Socrates
WEEKLY TIP
Thinking of going into business? Most new firms are sole proprietorships, but with the recent federal tax reforms, now is an excellent time to consider other business entities and weigh which one might be best for you.
WEEKLY RIDDLE
It is not a pool yet it has a cover, not a tree yet it has leaves, not a website yet it has pages, and not a shirt yet it has sleeves. What could it be?
Last week’s riddle:
You can crack it, share it, tell it, make it, play it. What is it, can you name it?
Last week’s answer:
A joke.
FEWER HOMES ARE SELLING
Demand is high, prices are high, and inventory is slim. In view of these factors, the 4.8% year-over-year fall for existing home sales just reported by the National Association of Realtors is not surprising. It represents the largest annual decline seen since August 2014. Other January NAR data showed homebuying down 3.2% from December levels and a median sale price of $240,500, up 5.8% in 12 months.1
FED MINUTES EMPHASIZE THE “GRADUAL”
Minutes from the January Federal Open Market Committee meeting appeared Wednesday, and while FOMC members saw “substantial underlying economic momentum,” they also stated that “gradual policy firming would be appropriate.” To many investors and economists, that hinted at a March rate increase. The CME Group’s FedWatch tool puts the odds of a quarter-point March move at 83.1%.2,3
OIL ADVANCES FOR A SECOND STRAIGHT WEEK
A 1.2% Friday climb left WTI crude 3.3% higher than it had been seven days earlier on the NYMEX. Oil settled at $63.55 a barrel Friday, still down 1.8% for February.4
STOCKS RISE
Across February 20-23, all three major Wall Street benchmarks advanced. The Nasdaq Composite set the pace with a 1.35% gain, wrapping up the week at 7,337.39. The S&P 500 and Dow Jones Industrial Average added a little less: the former rose 0.55% to 2,747.30; the latter, 0.36% to 25,309.99.5
THIS WEEK: On Monday, Wall Street eyes results from Boise Cascade, CoreLogic, Dean Foods, Fitbit, Nutrisystem, and Palo Alto Networks, and January new home sales numbers also appear. New Federal Reserve chair Jerome Powell testifies on monetary policy in Congress Tuesday; investors will also look at the Conference Board’s latest consumer confidence index, January hard goods orders, and earnings from AutoZone, Bank of Montreal, Discovery Communications, Etsy, Express Scripts, Extended Stay America, Frontier Communications, Hertz Global, IMAX, Live Nation, Macy’s, Papa John’s, Priceline, Sempra Energy, Square, TiVo, and Toll Brothers. On Wednesday, the Street reviews the second estimate of Q4 GDP, January pending home sales, and earnings from Analog Devices, Bayer, Chico’s FAS, Hilton Grand Vacations, Hostess Brands, L Brands, La Quinta Holdings, Lowe’s, Office Depot, Snyder’s-Lance, and Valeant Pharmaceuticals. Thursday offers ISM’s February factory PMI, January personal spending data, and earnings from AMC, Anheuser-Busch, Barnes & Noble, Best Buy, Gap, Kohl’s, and Nordstrom. On Friday, Foot Locker and JCPenney present earnings, and the University of Michigan issues its latest consumer sentiment index.
| % CHANGE | Y-T-D | 1-YR CHG | 5-YR AVG | 10-YR AVG |
| DJIA | +2.39 | +21.62 | +16.16 | +10.44 |
| NASDAQ | +6.29 | +25.74 | +26.41 | +21.86 |
| S&P 500 | +2.76 | +16.22 | +16.25 | +10.30 |
| REAL YIELD | 2/23 RATE | 1 YR AGO | 5 YRS AGO | 10 YRS AGO |
| 10 YR TIPS | 0.76% | 0.35% | -0.57% | 1.44% |
Sources: wsj.com, bigcharts.com, treasury.gov – 2/23/185,6,7,8
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.
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@solisweatlh.com
E-Mail: bob@soliswealth.com
CA Insurance License #0795867 & 0C05523
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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*There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results.
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Citations.
1 – cnbc.com/2018/02/21/january-existing-home-sales-.html [2/21/18]
2 – investors.com/news/economy/fed-minutes-policy-meeting/ [2/21/18]
3 – cmegroup.com/trading/interest-rates/countdown-to-fomc.html/ [2/23/18]
4 – marketwatch.com/story/oil-on-track-for-second-consecutive-weekly-rise-2018-02-23 [2/23/18]
5 – markets.wsj.com/us [2/23/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F23%2F17&x=0&y=0 [2/23/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F23%2F17&x=0&y=0 [2/23/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F23%2F17&x=0&y=0 [2/23/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F22%2F13&x=0&y=0 [2/23/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F22%2F13&x=0&y=0 [2/23/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F22%2F13&x=0&y=0 [2/23/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F22%2F08&x=0&y=0 [2/23/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F22%2F08&x=0&y=0 [2/23/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F22%2F08&x=0&y=0 [2/23/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [2/23/18]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [2/23/18]