Greetings!
What do the healthcare debate, Peyton Manning and Interest Rates all have in common?
Each of them is rising.
This week, the healthcare debate in the Supreme Court is taking center stage. By the time you read this, you will know more about what is happening than I do. Suffice it to say, this legislation has a very large impact on our investments. And, as long-time readers know, the four most dangerous words in investing are "This time it's different." Stocks have outlasted dramatic changes in legislation in the past, and I believe they will outlast these changes too.
Peyton Manning is coming to the Broncos,"trending" in Google searches these days, and his history of success is nothing short of remarkable. As much as it hurts to lose the shooting star of Tim Tebow, I think all of us Bronco fans can root for the "old guy," Manning, who is a venerable 36. If you have a few minutes, here is a humorous video from 9News on one young kid's opinion of the Tim Tebow trade: Click Here
Finally, interest rates are rising. The past month has seen many measures of bond prices decline. One of our Foundation Income manager, Robert Rodriguez, is concerned:
"An ardent student of history, Bob recommends financial advisors to focus on return of capital than return on capital. Investors would do well to heed his advice."
Maybe now is the time to schedule a meeting with your advisor. Our bond funds are actively managed in preparation for rising interest rates, and you may want to learn more how Mr. Rodriguez, and the rest of our fund managers, are handling bonds today. (1) |
| Weekly Economic Update | |
HOUSING MARKET COOLS DOWN IN FEBRUARY
Nationally, home sales took a step back last month. Last week, the National Association of Realtors reported a 0.9% drop in residential resales in February. The federal government subsequently announced a 1.6% slip in new home purchases last month, although new home prices rose by over 8.0%. The year-over-year numbers are better: existing home sales have jumped 8.8% in the last 12 months, and new home sales have picked up by 11.4%. Housing starts were down 1.1% in February from January's 4-year high, but building permits were up 5.1% for the month. (2,3)
INITIAL CLAIMS HIT A NEW 4-YEAR LOW
According to the Labor Department, claims fell by 5,000 to a seasonally adjusted 348,000 for the week ending March 17. This is the smallest amount since March 2008. (4)
LEADING INDICATORS MOVE NORTH AGAIN
The Conference Board's monthly index rose 0.7% for February, with reduced jobless claims and the interest rate spread exerting the most influence. Eight of the index's ten indicators were up for the month. (4)
BULLS PRESS PAUSE BUTTON
Stocks pulled back for the week as anxieties over subpar foreign manufacturing indices inspired some profit-taking. A new concern surfaced Friday: Reuters said Iran's oil exports had dropped 14% this month. The S&P 500 retreated 0.50% last week to 1,397.11 Friday. The DJIA lost 1.15% on the week to settle Friday at 13,080.73, while the NASDAQ advanced 0.41% in five days to wrap up Friday at 3,067.92. Gold ended the week at $1,662.40 an ounce, oil at $106.87 a barrel. Unleaded gasoline averaged $3.89 a gallon nationally in AAA's newest price survey. (5,6) |
| Market Summary |
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% Change |
Y-T-D |
1Yr Chg |
5-Year Avg | |
DJIA |
+7.06 |
+8.23 |
+0.96 | |
NASDAQ |
+17.76 |
+13.70 |
+5.06 | |
S&P 500 |
+11.09 |
+7.67 |
-0.54 |
(Source: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov - 3/23/12). 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.valuewalk.com/2012/03/robert-
rodriguez-ceo-of-fpa-warns-of-record-high-margins/
(2) - www.washingtonpost.com/business/economy/new-
home-sales-fell-in-february-but-prices-rose/2012
/03/23/gIQA92X8VS_story.html [3/23/12]
(3) - business.time.com/2012/03/20/us-builders-start-fewer-homes-but-permits-jump/ [3/20/12]
(4) - www.nasdaq.com/article/us-jobless-claims-fall-in-week-indicators-rise-20120322-01286 [3/22/12]
(5) - money.msn.com/market-news/post.aspx?post=c38964a6-60ee-42a2-8b4e-cd45ed26f39d [3/23/12]
(6) - montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [3/23/12]
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 every man's obligation to put back into the world at least the equivalent of what he takes out of it."
Albert Einstein |
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Karl Frank In Investment Advisor Magazine |
 | | Investment 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. |
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Karl Frank was interviewed by 9News on January 9, 2012 regarding "Key Questions to ask when picking a financial advisor". | |
Click Here to View Video
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Riddle of the Week
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You need to take a gallon of oil out of a barrel of oil. How can you do it using only a 3-gallon container and a 5-gallon container?
Last week's riddle:
It is a short and simple word, and something that everyone needs. Put an 'r' on the end and you have a new friend, but if the first letter goes away, you are sad. What is this word?
Last week's answer:
Love
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