WEEKLY QUOTE
“The best way to have a good idea is to have lots of ideas.” – Linus Pauling
WEEKLY TIP
Given the desire to travel and live well, the first few years of retirement may be expensive ones. Before and during those years, be mindful of economic and market cycles. They could affect your portfolio, and, by extension, your plans.
WEEKLY RIDDLE
After it rises, it usually loses weight. After it falls, it often becomes heavier. What is it?
Last week’s riddle:
Take three letters. Arrange them one way, and you have a noun signifying weight. Arrange them another way, and you have an adverb signifying a negative. What are these three letters?
Last week’s answer:
N, O and T.
BLUE CHIPS HIT ALL-TIME HIGHS
Donald Trump’s unexpected presidential election win did not rattle Wall Street. Instead, bulls saw the prospect of greater federal outlays and less business regulation in the near future. The Dow Jones Industrial Average closed at a new record Friday: 18,847.66. The Dow 30 had its finest week since 2011, gaining 5.36%. As for the S&P 500, it advanced 3.80% in five days to 2,164.45. Settling at 5,237.11 Friday, the Nasdaq Composite rose 3.78% on the week.1,2
FED’S FISCHER: TIME FOR GRADUAL TIGHTENING
Stating that the central bank “appears reasonably close to achieving both inflation and employment components of its mandate,” Federal Reserve vice chairman Stanley Fischer noted Friday that “the case for (raising interest rates) gradually is quite strong, keeping in mind that the future is uncertain and that monetary policy is not a preset course.” Some analysts believe sizable infrastructure spending under a Trump administration could spur inflation. On Friday, Fed fund futures contracts implied an 81% chance of a hike at the central bank’s December meeting.3
CONSUMER SENTIMENT ROSE BEFORE ELECTION
Displaying a reading of 91.6, the University of Michigan’s preliminary November household sentiment index climbed 4.4 points off its final October mark. Analysts polled by Bloomberg forecast an initial November reading of 87.9 for the gauge.4
CRUDE, GOLD PRICES DECLINE
As Wall Street rallied, key commodities had a tough week. Oil and gold were among them. The yellow metal settled at $1,227.40 an ounce on the COMEX Friday, leaving it down 3.75% at the end of this second week of the month. Oil ended the week at $43.12 a barrel on the NYMEX; it has sunk 7.78% so far in November.5
|
% CHANGE
|
Y-T-D
|
1-YR CHG
|
5-YR AVG
|
10-YR AVG
|
|
DJIA
|
+8.16
|
+6.13
|
+11.69
|
+5.57
|
|
NASDAQ
|
+4.59
|
+3.03
|
+19.90
|
+11.92
|
|
S&P 500
|
+5.90
|
+3.97
|
+14.92
|
+5.67
|
|
REAL YIELD
|
11/10 RATE
|
1 YR AGO
|
5 YRS AGO
|
10 YRS AGO
|
|
10 YR TIPS
|
0.27%
|
0.77%
|
-0.04%
|
2.25%
|
Sources: wsj.com, bigcharts.com, treasury.gov – 11/11/162,6,7,8
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 – reuters.com/article/us-usa-stocks-idUSKBN13619K [11/11/16]
2 – markets.wsj.com/us [11/11/16]
3 – usatoday.com/story/money/2016/11/11/fischer-case-gradual-rate-hikes-quite-strong/93618568/ [11/11/16]
4 – bloomberg.com/news/articles/2016-11-11/u-s-consumer-sentiment-hits-five-month-high-before-election [11/11/16]
5 – money.cnn.com/data/commodities/ [11/11/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F10%2F15&x=0&y=0 [11/11/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F10%2F15&x=0&y=0 [11/11/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F10%2F15&x=0&y=0 [11/11/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F10%2F11&x=0&y=0 [11/11/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F10%2F11&x=0&y=0 [11/11/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F10%2F11&x=0&y=0 [11/11/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F10%2F06&x=0&y=0 [11/11/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F10%2F06&x=0&y=0 [11/11/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F10%2F06&x=0&y=0 [11/11/16]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/11/16]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/11/16]