Pat Webb - Phase 2 Advisors
 

Steadily Inching Forward

Weekly Update - August 20, 2012

In This Issue
Performance
Headlines
Recipe Title
Golf Tip
Health Tip
Green Fact
The Markets:

Investors experienced another quiet week as slow trading and modestly encouraging economic data failed to rouse much excitement. U.S. trading volume has declined in recent weeks as traders take vacations and investors wait for clues from the Fed summit at the end of the month and the ECB meeting in September. All the major indices closed up for the week, with the S&P picking up 0.87%, the Dow gaining 0.51%, and the Nasdaq inching 1.84%. 

 

Markets got a mild boost from domestic economic data on Thursday, but the rally lacked conviction. Equities continued their slow upward grind on Friday, boosted by a solid consumer sentiment reading. The Michigan Consumer Sentiment survey exceeded the consensus estimate, indicating that consumers are feeling more optimistic about their prospects in this economy.[1] Rising consumer confidence raises the odds that American households can sustain the spending that led to July's pickup in retail sales, setting the stage for stronger growth in this quarter.

 

On another positive note, U.S. homebuilder confidence hit a five-year high this month.Homebuilders are upbeat about their economic prospects as home sales approach levels not seen since the housing bubble burst. Low mortgage rates and a decline in unsold homes have fueled improved sales, and banks have aided the housing recovery by holding back foreclosed homes to avoid flooding the market.[2]

 

Over in the technology sector, Groupon (GRPN) and Facebook (FB), two social media darlings, are feeling the pain of poor market sentiment. Shares of both companies finished the week at all-time lows; Facebook has lost nearly half its market value since its IPO in May and Groupon is now a sub-$5 stock. Groupon was hammered this week by a poor earnings report and concern about its cash position, while Facebook lost 4% on Friday as the first investor lock-up period expired and allowed insiders to sell their holdings. Both companies have struggled in the market since their respective IPOs and can be held up as cautionary tales of the dangers of jumping into fad stocks.[3,4]  

 

Next week will see the release of earnings reports from technology heavyweights Dell (DELL), and Hewlett-Packard (HPQ), providing insight into how they're coping with soft personal computer sales and changing industry trends. We'll also see the release of meeting minutes from the Fed's FOMC meeting, which may give investors the clues they're waiting for about the Fed's plans for quantitative easing.

 

ECONOMIC CALENDAR: 

Wednesday: Existing Home Sales, EIA Petroleum Status Report, FOMC Minutes

Thursday: Jobless Claims, New Home Sales

Friday: Durable Goods Orders

 



Performance




Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

 

Headlines

Industrial production rises for fourth straight month. American factories produced more cars, airplanes, and other durable goods last month in a hopeful sign that the manufacturing sector is improving. Factory output had slowed this spring on reduced demand from Europe but appears to be poised for additional growth this quarter.[5]

 

Housing starts dipped in July, but permit applications are up. U.S. homebuilders slowed their rate of new construction in July; but, in a sign of optimism about future construction, applications for permits reached the highest level since August 2008.[6]

 

Unemployment claims edge upward, but data shows modest hiring. The number of workers applying for unemployment ticked slightly higher last week but remained below 375,000, which is the magic number for the jobs recovery - unemployment applications above 375k indicate a worsening jobs market. Applications have trended lower for the past two months, indicating that employers are laying off fewer workers and hiring new ones.[7]

 

Europe is getting back to business. In a signal that August vacations are ending and it is time for European leaders to start grappling with the sovereign debt crisis again, Angela Merkel, the German chancellor, has expressed cautious support for measures to support Spain and Italy, while a Finnish official has suggested that euro zone leaders are preparing for the worst, including a possible breakup of the currency bloc.[8]

 

 

 

Quote of the Week
"Don't judge each day by the harvest you reap but by the seeds that you plant."

- Robert Louis Stevenson

Recipe of the Week

Turkey Joes with Coleslaw

 





A tangy mix of barbecue sauce and Worcestershire makes this
easy-to-prepare sandwich juicy and flavorful. 

 



Ingredients:

1 tablespoon canola oil

1 pound ground turkey

1 onion, chopped

1 clove garlic, chopped

1 8-ounce can tomato sauce

1/4 cup dark brown sugar

1/4 cup barbecue sauce

1 tablespoon Worcestershire sauce

Kosher salt and black pepper

1/3 cup sour cream

1 tablespoon red wine vinegar

1/4 small head green cabbage, thinly sliced (about 1 cup)

1/4 small head red cabbage, thinly sliced (about 1 cup)

2 carrots, grated

4 hamburger buns

 

Directions: 

1) In a large skillet, heat the oil over medium-high heat. Add the turkey, onion, and garlic and cook, breaking the meat up with a spoon, until browned, 3 to 5 minutes.

2) Mix the tomato sauce, sugar, barbecue sauce, and Worcestershire into the turkey mixture; season with teaspoon salt and teaspoon pepper. Reduce heat and simmer until thickened, 3 to 5 minutes.

3) Meanwhile, in a medium bowl, whisk together the sour cream, vinegar, teaspoon salt, and teaspoon pepper. Add the cabbage and carrots and toss to combine.

4) Serve the turkey mixture on the buns with the coleslaw.

 

 

 

Golf Tip

Practice with a Nickel



Believe it or not, 40% or more of the strokes you make take place on the putting green. And yet, so often, the club responsible for so many strokes receives the least amount of quality practice time.

 

You can even practice your putting while at home. Here's an old Arnold Palmer tip: On a smooth floor (cement, wood, linoleum, etc.) throw down a nickel and putt it around the room without scuffing the floor or missing the nickel. If you can execute this drill consistently, you will see your putting improve. Plus, it's fun. One note: Be careful not to scratch your floors.


Healthy Lifestyle

Create a Family Health Calendar


It can be tough keeping track of medical appointments, immunizations, and important dates for the whole family. A healthcare calendar can help you plan appointments and ensure that important dates aren't missed. Ask your doctor's office for a copy of their preventative care guidelines, which you can use to create a complete schedule of check-ups, immunizations, and screenings for your family.


Green Living

Have a Green Wedding


If you or someone you love is planning a wedding, incorporating some environmentally conscious choices can go a long way to reducing the impact of your wedding. A few simple changes you can make are to print invitations on recycled paper and ask guests to RSVP online to save paper. Consider serving seasonal organic food at the reception; many caterers can accommodate these food preferences. By limiting parking at the event, you can encourage guests to carpool or use public transportation.


Share the Wealth of Knowledge!


Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!

 

 


Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

 

Diversification does not guarantee profit nor is it guaranteed to protect assets


The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

 

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

 

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia. 

 

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury 

 

Note as a benchmark for the long-term bond market.

 

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI. 

 

The Pending Home Sales Index, a leading indicator of housing activity,  measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops.  The PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years. The results are weighted to produce 

the index.

 

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

 

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

 

Google Finance is the source for any reference to the performance of an index between two specific periods.

 

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

 

Past performance does not guarantee future results.

 

You cannot invest directly in an index.

 

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

 

These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information. 

 

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

 

[1] http://www.businessweek.com/news/2012-08-17/michigan-consumer-sentiment-index-increased-to-73-dot-6-in-august 

 

[2] http://www.usatoday.com/money/economy/housing/story/2012-08-15/home-builder-sentiment-five-year-high/57070372/1 

 

[3] http://blogs.wsj.com/marketbeat/2012/08/17/marketbeat-podcast-are-social-media-stocks-a-fad/ 

 

[4] http://www.usatoday.com/money/perfi/stocks/story/2012-08-18/facebook-pressures/57122450/1 

 

[5] http://www.usatoday.com/money/economy/production/story/2012-08-15/industrial-production-july/57066898/1 

 

[6] http://www.usatoday.com/money/economy/story/2012-08-16/economy-unemployment-claims-housing-starts/57089584/1 

 

[7] http://www.usatoday.com/money/economy/story/2012-08-16/economy-unemployment-claims-housing-starts/57089584/1 

 

[8] http://www.nytimes.com/2012/08/18/business/global/merkel-backs-european-central-bank.html 


Pat Webb
Pat Webb - Phase 2 Advisors
8100 Turman Ct
Fort Collins, CO 80525
970-776-3306
patwebb@phase2adv.com
http://www.phase2adv.com