Greetings!
Many business owners, investors and Americans are breathing a sigh of relief as we look into the last 2 weeks of tumultous 2011. Historically, the year three years after a recession like 2008 has been a good year. This year, how do you feel? Many are glad to put it behind us!
We, too, at AIFS exclaim, "we made it!" Our move across the parking lot went off largely without error. If you've sent an email or called us in the very near past, and we have not responded, then forgive us. We also switched phone providers, internet providers, you name it. The new space is, quite literally, all-new!
 | | Moving Day |
Please update your records with our new address:
9800 Mt. Pyramid Court, Suite 450
Englewood, CO 80112
Come visit us anytime! We are hosting an official "Office Warming" party on January 20th from 4 - 7 pm. |
| END OF YEAR PLANNING! |
Have you spoken to your advisor about your end of year planning yet? Do you have a required minimum distribution or an IRA contribution to make? Do you need, or would you like, a tax deduction? Give us a call!
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| A Few Words on Europe |
If you are not confused, then you do not understand what is going on in Europe.
This is a paraphrase of a popular economist, John Mauldin. His other, timely, comparison is to the classic rock and roll song, Hotel California. Regarding England, "you can check out any time you want, but you can't ever leave."
Our stock investments are in well-managed, well-financed, companies who are finding ways to potentially make money in spite of the economy. These companies pay us dividends, and today, these dividends are at or near record-highs. Our bond investments are providing some stability, income and the managers are preparing for the eventual increase in interest rates that the "soothsayers" for years have promised will come.
We are better positioned than ever for the challenges that are upon us. Call your advisor to learn more about how we are positioned for the environment we face today. |
| Weekly Economic Update | |
CONSUMERS FEEL BETTER IN EARLY DECEMBER
December's initial University of Michigan consumer sentiment index is in, and the reading of 67.7 represents a six-month high. This is a 3.6% increase from the final November survey. The sub-index of consumer expectations (which some regard as an indicator of future consumer spending) improved from 55.4 to 61.1. In other positive news for households, retail gas prices hit a low unseen since February on December 5, according to the American Automobile Association, $3.27 was the national average for a gallon of regular unleaded. (1)
SERVICE SECTOR GROWTH MODERATES
The 52.0 reading on the Institute for Supply Management's November service sector index was the lowest since January 2010. Anything above 50 still denotes expansion, but the reading disappointed investors; economists polled by Reuters had forecast a 0.6% gain to 53.5. (2)
MORTGAGE APPS RISE ALMOST 13%
The Mortgage Bankers Association reports that home loan demand hit a four-month peak in the week of November 28-December 2. According to Freddie Mac's latest figures, the average rate on the 15-year FRM was 3.27% last week; interest rates on 30-year FRMs averaged 3.99%.(3)
GOLD & OIL RETREAT FOR THE WEEK
Despite strong Friday gains, oil and gold both had down weeks. Oil futures slipped 1.54% across five days to $99.41 while gold futures lost $34.20 across the same time frame to settle at $1,712.80 per ounce on the COMEX December 9.(4)
RALLY REACHES TWO WEEKS
A new EU fiscal treaty helped stocks push north Friday, (even with the UK opting out of the deal). Across December 5-9, the DJIA gained 1.37%, the S&P 500 0.88% and the NASDAQ 0.76%. At the close on Friday, the Dow was at 12,184.26, the S&P at 1,255.19, and the NASDAQ at 2,646.85.(5,6)
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| Market Summary |
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% Change |
Y-T-D |
1Yr Chg |
5-Year Avg | |
DJIA |
+5.24 |
+7.16 |
-0.20 | |
NASDAQ |
-0.23 |
+1.15 |
+1.72 | |
S&P 500 |
-0.19 |
+1.80 |
-2.19 |
(Source: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov - 12/9/11). 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) -www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/12/09
/bloomberg_articlesLVY38O0UQVI9.DTL [12/9/11]
(2) - www.reuters.com/article/2011/12/05/us-usa-economy-services-idUSTRE7B415X20111205 [12/5/11]
(3) - www.usatoday.com/money/economy/housing/story/2011-12-08/mortgage-rates-hover-near-lows/51740400/1 [12/8/11]
(4) - blogs.wsj.com/marketbeat/2011/12/09/data-points-energy-metals-534/ [12/9/11]
(5) - www.cnbc.com/id/45611888 [12/9/11]
(6) - montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [12/9/11]
(7) - http://www.youtube.com/watch?v=Y031CrTZBAo
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 |
""Education is the transmission of civilization." Will Durant |
| Karl Frank in Investor Advisor Magazine | |
 | | Investor Advisor - November 2011 |
Investor Advisor Magazine's November 2011 edition features Karl Frank. In the article "Never Satisfied" John Sullivan writes: Passion born of tragedy drives Karl Frank to do all he can to help business owners ensure a legacy for loved ones and heirs. Industrial age publisher and philanthropist Frederick Bonfils said there is no hope for the satisfied man. If that's the case, Karl Frank is full of hope.
"I'm never satisfied," Frank says matter-of-factly when asked about his advisory firm.....Read More. |
| Watch Karl Frank on Channel 9 News & Read his article "Where to Invest in Times of Turmoil" | |
Click Here
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Riddle of the Week |
Seven people stand in a square room which measures 30' x 30'. Each one can see the entire room and everyone in it without making any physical movement (aside from eye movement). Where inside this room can you place an apple so that all but one person can see it?
Last week's riddle:
Alexandra's mom had four children. The first one was named May, the second was named June, and the third was named August. What was the fourth child's name?
Last week's answer:
Alexandra's
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