Greetings!
According a survey conducted this Spring, we are more optimistic about our personal financial futures than we are about the prospects for the nation as a whole. (8)
1. 60% are not confident that the economy will rebound during the coming year.
2. 83% believe their finances will either remain the same or improve during the next 12 months.
3. 25% of respondents experienced no financial hardships due to the stock market collapse and recession.
4. Notably, planning ahead for financial goals makes a significant impact on people's outlook - those with a financial plan are more optimistic and willing to act on goals such as improving their homes,
searching for a new job and investing in the stock market.
5. Those who have a financial plan are more apt to feel confident that the economy will rebound within the next 12 months compared to those who do not have a financial plan.
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| A Money Manager's Point of View |
How are Real Estate Investment Trusts doing?
REIT stocks continued to move higher in the first five months of 2011.
REIT fundamentals are improving.There has been a continued improvement in the availability and cost of debt. The property market has seen an increase in transaction activity. Demand for REITs remains strong. The two key risks we identified in 2010 and coming into 2011 still exist. At current valuations, we believe REITs are overpriced. (1)
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Economic Briefs |
PEAK HOMEBUYING SEASON, BUT FEWER HOME SALES
The National Association of Realtors reported a 3.8% dip in existing home sales in May, and the Census Bureau noted a 2.1% reduction in new home purchases last month. The good news? New home sales were up 13.5% from last May, with the average price of a new home up $1,400 to $266,400. However, existing home sales were down 15.3% from a year before while the median existing home price was down 4.6% across the past 12 months.1,2
IEA RELEASE SHIFTS SENTIMENT IN OIL MARKET
Thursday, the International Energy Agency decided that major oil-producing countries should release oil from their reserves to address a global shortfall. The U.S. will supply half of the 60 million barrels from its Strategic Petroleum Reserve, with the balance coming from nations in Europe and Asia. On Friday, oil futures in Europe slipped about 8% and settled at a four-month low; U.S. oil futures lost only 2.4% on the week and settled at $91.16 a barrel on the NYMEX.3
POSITIVE SIGNALS FOR BUSINESS INVESTMENT
The Commerce Department reported a 1.9% increase in durable goods orders for May. That's a nice news item in itself, but consider the last few quarters and you notice that business investment is really ramping up: data from the Census Bureau has orders for new capital equipment rising at a 28% annualized pace during the last three months, and shipments of new capital equipment are up 15% in that span.4,5
NASDAQ GLIDES THROUGH VOLATILE WEEK
The tech-heavy index pulled out a 1.39% advance across June 20-24 to settle at 2,652.89 Friday, having a very different week from the Dow (-0.58% to 11,934.58) and the S&P 500 (-0.24% to 1,268.44).6
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| Market Summary |
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% Change |
Y-T-D |
1Yr Chg |
5-Year Avg | |
DJIA |
+3.08 |
+17.55 |
+1.72 | |
NASDAQ |
+.00001 |
+19.64 |
+5.00 | |
S&P 500 |
+.086 |
+18.14 |
+0.38 |
(Source: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov - 6/24/11). Past performance is no guarantee of future results. Indices are unmanaged, and investors cannot invest in them directly. |
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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) -http://www.advisorintelligence.com
(2) - marketwatch.com/story/growth-slowing-in-four-of-12-districts-beige-book-2011-06-08?dist=countdown [6/8/11]
(3) - bloomberg.com/news/2011-06-10/treasury-yields-near-2011-low-on-prospect-fed-to-keep-interest-rates-low.html [6/10/11]
(4) - online.wsj.com/article/SB1000142405270230425930457637
5700263962290.html [6/10/11]
(5) - reuters.com/article/2011/06/10/us-markets-precious-idUSTRE7592IU20110610 [6/10/11]
(6) - cnbc.com/id/43347432/ [6/10/11]
(7) - cnbc.com/id/43358833 [6/10/11]
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.
(8) - KRC Research, a global non-partisan opinion research firm, in partnership with Certified Financial Planner Board of Standards, Inc. conducted a nationally representative survey of 1,011 adults 18 years and older between June 2-6, 2011. The margin or error for a sample this size is plus or minus 3.1 percentage points.
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 better to be absolutely ridiculous then absolutely boring."
Marilyn Monroe
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| Watch Karl Frank's interview on MoneyLine9 9NEWS on May 9, 2011 | |
Click Here
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| Watch Karl Frank on Channel 9 News & Read his article "Where to Invest in Times of Turmoil" | |
Click Here
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| 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. |
| Riddle of the Week |
Wilson, Xavier, Yolanda, and Zach are standing in line at the market. See if you can figure out their order from these clues: Yolanda is between Wilson and Xavier, Zach is next to Wilson, and Xavier is not first.
Last week's riddle:
What do a shark, a zipper and a comb all have in common?
Last week's answer:
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