“The art of life lies in a constant readjustment to our surroundings.” – Okakura Kakuzo
If you introduce new equipment to your company, bear in mind that your firm’s productivity may drop as your workers ride the learning curve. Make sure you have the financing in place to contend with that possibility.
Rob looks out at a boat full of people in a harbor. He is in disbelief when his friend Christine looks at the same boat and says there is not a single person on board. Is Rob seeing things? How could Christine be right in her assertion?
Last week’s riddle:
You will never see it. It brings you down, but never up. What is it?
Last week’s answer:
CONSUMER SENTIMENT READING COOLS
The initial January University of Michigan consumer sentiment index came in at 94.4 last week, 1.5 points beneath its final reading of 2017 and 4.1 points under its level of one year ago. Without prompting, 34% of respondents to the latest UMich survey brought up the subject of the recent federal tax reforms; 70% of them felt the reforms would have a positive effect on their lives; 18%, a negative effect.1
WINTER WEAKENS HOUSING STARTS
New Census Bureau data shows groundbreaking decreased 8.2% in December after a (revised) 3.0% November gain. Building permits ticked down 0.1% last month.2
The International Energy Agency predicted U.S. oil output would near a 50-year peak in 2018. That hurt prices and left WTI crude 1.5% lower for the week; it fell to $63.37 at Friday’s closing bell.3,4
DOW REACHES ITS SECOND MILESTONE IN A MONTH
Last week, the blue chips improved 1.04% on the way to a Friday settlement of 26,071.72. On Tuesday, the benchmark closed above 26,000 to complete the quickest 1,000-point climb in its history: it took only eight days. (The previous record was 23 trading sessions.) The Nasdaq Composite (+1.04% to 7,336.38) and S&P 500 (+0.86% to 2,810.30) also logged weekly advances.5,6
THIS WEEK: Halliburton, Netflix, TD Ameritrade, UBS, and Zions Bancorp issue earnings Monday. Capital One, Fifth Third, Johnson & Johnson, Kimberly-Clark, Procter & Gamble, State Street, Texas Instruments, Travelers Companies, and Verizon join the earnings parade Tuesday. December existing home sales figures appear Wednesday, plus earnings from Abbott Labs, Ameriprise Financial, Comcast, Discover, Ford Motor Co., General Dynamics, General Electric, Grainger, Legg Mason, Northern Trust, Novartis, Rockwell Automation, Royal Caribbean International, Stanley Black & Decker, United Rentals, and Whirlpool. On Thursday, December new home sales numbers emerge, plus the latest initial jobless claims report and earnings from 3M, Alaska Air Group, American Airlines, Biogen, Caterpillar, Celanese, Celgene, Fiat Chrysler, Freeport-McMoRan, Intel, JetBlue, Northrop Grumman, Raytheon, Sherwin Williams, Southwest Airlines, Starbucks, Union Pacific, and Western Digital. The first estimate of Q4 economic expansion arrives Friday, along with earnings news from Colgate-Palmolive, Honeywell, NextEra Energy, and Rockwell Collins.
|% CHANGE||Y-T-D||1-YR CHG||5-YR AVG||10-YR AVG|
|REAL YIELD||1/19 RATE||1 YR AGO||5 YRS AGO||10 YRS AGO|
|10 YR TIPS||0.58%||0.43%||-0.66%||1.42%|
Sources: wsj.com, bigcharts.com, treasury.gov – 1/19/186,7,8,9
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
La Quinta, CA 92253
Office: (760) 771-3339
Fax: (760) 771-3181
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
The information contained in this email message is being transmitted to and is intended for the use of only the individual(s) to whom it is addressed. If the reader of this message is not the intended recipient, you are hereby advised that any dissemination, distribution or copying of this message is strictly prohibited. If you have received this message in error, please immediately delete.
P.S. You have my permission to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this e-mail with their e-mail address and we will ask for their permission to be added.
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.
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. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. 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.
1 – sca.isr.umich.edu/ [1/19/18]
2 – investing.com/economic-calendar/ [1/19/18]
3 – marketwatch.com/story/oil-prices-slip-from-3-year-high-as-traders-wait-for-trump-move-on-iran-2018-01-12 [1/19/18]
4 – marketwatch.com/story/oil-prices-sink-1-head-for-biggest-weekly-loss-since-oct-2018-01-19/ [1/19/18]
5 – nytimes.com/reuters/2018/01/17/business/17reuters-usa-stocks-dow-factbox.html [1/17/18]
6 – markets.wsj.com/us [1/19/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F19%2F17&x=0&y=0 [1/19/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F19%2F17&x=0&y=0 [1/19/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F19%2F17&x=0&y=0 [1/19/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F18%2F13&x=0&y=0 [1/19/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F18%2F13&x=0&y=0 [1/19/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F18%2F13&x=0&y=0 [1/19/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F18%2F08&x=0&y=0 [1/19/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F18%2F08&x=0&y=0 [1/19/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F18%2F08&x=0&y=0 [1/19/18]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/19/18]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/19/18]