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Greetings!
Sometimes, the best wisdom comes from other folks. Why would I try to say it differently when The Mad Hedge Fund Trader says it so well? "Economists are furiously downsizing their economic growth forecasts for 2011 in the wake of the oil price spike, both for the US and for the world at large. Since last week, West Texas crude prices have soared $12 from $86 to $98. Each $1 increase in the price of oil jumps gasoline prices by 2.5 cents. Each one cent rise in the cost of gasoline takes $1 billion out of the pockets of consumers.
If oil stays at this price, it removes $30 billion from the pockets of consumers. At $110/barrel, it short changes them by $60 billion, or 0.41% of GDP. If you wonder why hedge fund managers have lurched into an aggressive 'RISK OFF' mode, are throwing their babies out with the bathwater, and why the volatility index is spiking to three month highs, this is why." (8) |
| Lunch & Learn |
Explore the future of solar energy with John Benner, Manager of Photovoltaic (PV) Industry Partnerships at the National Renewable Energy Laboratory.
The National Renewable Energy Laboratory is pursuing independent and collaborative research and development on advanced solar cells. These solar cells, or PV devices, convert sunlight to electricity and are the technology basis of an industry that has grown to $20B annually in sales.
John will talk about when energy may become a significant part of our generating mix, industry shifts that have sent much of the business to China, and some opportunities that may bring it back.
Making Money from Sunshine
Lunch Provided
Date: Tuesday, March 8, 2011
Time: 11:30 AM - 12:30 PM
Location: Our offices, 9780 Mt. Pyramid Court, Suite 130
Englewood, CO 80112
RSVP by e-mail to Jane@assetsandincome.com or call 303-690-5070
Reservations are required. Feel free to bring a friend or colleague!
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| Economic Briefs |
STRIKING IMPROVEMENT IN CONSUMER SENTIMENT
Consumer sentiment is really rebounding - at least by the measure of the country's two most respected polls. The final February Thomson Reuters/University of Michigan consumer sentiment survey came in at 77.5, leaping north from January's 74.2 mark to the highest reading in 37 months. The Conference Board's consumer confidence index climbed all the way to 70.4 this month (it was at 64.8 in January) and its gauge of future expectations hit its most optimistic level since December 2006.(1,2)
REAL ESTATE MARKET WEATHERS CHILLY JANUARY
According to the Census Bureau, new home sales slipped 12.6% last month. Yet the National Association of Realtors reported that residential resales improved by 2.7% in January, the fifth increase in the past six months. Existing homes have apparently become a bit less expensive: the December Case-Shiller home price index came out last week and showed prices slipping 1.0% from November across 20 metro areas.(2,3)
DURABLE GOODS ORDERS UP 2.7%
Aircraft orders drove the overall increase in the category for January. Economists polled by Dow Jones Newswires had forecast a 2.0% gain. Yet when you factor out transportation orders, durable goods orders actually fell 3.6% in January.(4)
CRUDE SETTLES NEAR $98, GAS PRICES SPIKE NORTH
By Friday afternoon, oil prices had retreated from Thursday's $103 intraday peak. On the NYMEX, crude for April delivery settled at $97.88 a barrel Friday, capping a 9.11% weekly advance. Retail gasoline prices rose 5.9 cents overnight; the average price for a gallon of regular unleaded was $3.29 on Friday.(5,6)
UNREST HAMPERS STOCKS
February 21-25 amounted to the worst trading week for the S&P 500 and Dow since November. Statistically, this is what happened last week: DJIA, -2.10% to 12,130.45; NASDAQ, -1.87% to 2,781.05; S&P 500, -1.72% to 1,319.88.(7)
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| Market Summary |
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% Change |
Y-T-D |
1Yr Chg |
5-Year Avg | |
DJIA |
+4.78 |
+17.53 |
+1.93 | |
NASDAQ |
+4.83 |
+24.48 |
+4.32 | |
S&P 500 |
+4.95 |
+19.67 |
+0.39 |
(Source: cnbc.com, bigcharts.com, ustreas.com, bls.gov, 2/25/11) |
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Create a beautiful week!
Karl Frank, MBA, MSF
Certified Financial Planner (R)
A & I Financial Services LLC
303.690.5070
Citations:
(1) - marketwatch.com/story/consumer-sentiment-rises-in-february-2011-02-25 [2/25/11]
(2) - blogs.barrons.com/stockstowatchtoday/2011/02/22/consumer-confidence-up-home-prices-down/ [2/22/11]
(3) - marketwatch.com/story/new-home-sales-fall-126-in-january-2011-02-24 [2/24/11]
(4) - blogs.barrons.com/stockstowatchtoday/2011/02/24/jobless-claims-fall-durable-goods-orders-gain/ [2/24/11]
(5) - blogs.wsj.com/marketbeat/2011/02/25/data-points-energy-metals-464/ [2/25/11]
(6) - money.cnn.com/2011/02/25/news/economy/gasoline_prices/
index.htm [2/25/11]
(7) - cnbc.com/id/41785394 [2/25/11]
(8) - http://www.madhedgefundtrader.com/february-24-2011.html
This material has been prepared and is distributed solely for information purposes only. It is not a solicitation or an offer buy any securities or instrument or to participate in any trading strategy. There is no assurance that a particular trading strategy will achieve investment success.
Securities offered through Geneos Wealth Management, Inc., member FINRA/SIPC. Investment advisory services offered through A & I Financial Services LLC, registered investment advisor. |
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| Words for Thought |
"It is not the position, but the disposition."
Susan Sontag |
| Read about Renewable Energy Investments | |
Karl Frank was interviewed in The Denver Magazine. The article talks about investing in our renewable energy future.
Click Here to Read Article |
| Read about us in the Denver Post | |
Karl Frank & Cameron Morgan were featured in the Denver Post. They talked about how to have a happy holiday while sticking to a budget.
Click here to read the article. |
| View our Money Makeovers |
| Karl Frank, Certified Financial Planner, provided several Money Makeovers for families on CBS Channel 4.
Learn more!
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| | View The Financial Planning Association Video | |
Karl Frank and many other Financial Planners offered pro-bono advice to thousands at the first annual "FPA Financial Planning week."
Click on logo below to view video. |  |
| Riddle of the Week |
I was framed, yet the man who framed me committed no crime. How is this possible?
Last week's riddle:
Tim hands a friend $63 using six bills, yet none of them are dollar bills. How is he able to do this?
Last week's answer:
Tim hands his friend one $50 bill, one $5 bill and four $2 bills.
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