Greetings!
I don't know about you, but I love to read visitor's opinions of our hometown. Tuesday's Wall Street Journal had a front page story on the "bellweather" Arapahoe county, in particular the city of Centennial, as they parse through how the two Presidential candidates messages are being received. My favorite parts are looking at the pictures of our neighborhood homes, golf courses and stores and seeing if I can recognize them. It's like taking a tour with fresh eyes. I enourage you to read the article; email us for a copy!
One interviewee, Ms. Ritchie, says "people hear what they want to hear. It really comes down to where people get their information." This, of course, is one of the great benefits of the times we live in. We approach every problem with an intuition, a bias, and we now have so many sources of information we can choose to pay attention to only those that agree with our intuitions. In a purely logical world, where actions beget reactions, it's dangerous to always see things through the same mindset every time. These behaviors create opportunities for contrarian thinkers.
In our investment committee here at AIFS, we challenge each other's assumptions often and understand where we sit when we take a seat at the table. We have diverse opinions. Sometimes, we have heated conversations. But that's not all. We hire outside researchers from Litman Gregory who run an investment committee, now more than 20 years old, with a half dozen or more Chartered Financial Analysts. We hire Athena Invest, run by Dr. Tom Howard, to select stocks that take advantage of behavioral biases, namely balance sheet, valuation and dividend misprisions.
Centennial, Colorado, is a great place to call home. |
| Weekly Economic Update | |
CONSUMER SENTIMENT CONTINUES TO SLIP
Analysts polled by Reuters had expected the University of Michigan's initial July consumer sentiment index to show a minor gain. That didn't happen: instead of the projected 0.2% rise to 73.4, the index fell 1.2% to 72.0, a low unseen since December. An exclamation point within the data: just 19% of Americans polled felt that their financial situation would improve within the next year, a record low for the survey. The barometer of current economic conditions did improve to 83.2 from 81.5. (1)
PRODUCER PRICES RISE 0.1% IN JUNE
Given the 0.9% decline in energy prices last month, this overall gain in the Producer Price Index was surprising. The cost of gasoline increased 1.9% last month and food prices climbed as well, influencing the advance. Core PPI rose 0.2% in June. (1)
OIL, GOLD & RETAIL GAS PRICES MOVE NORTH
Pump prices increased 0.9% last week, according to AAA's Daily Fuel Gauge Report; they are up 1.0% so far for the month. NYMEX crude gained 3.14% last week to settle Friday at $87.10 a barrel; gold advanced 0.86% on the COMEX for the week, with those futures settling Friday at $1,592.50 per ounce. (2)
DOW CLIMBS 200 POINTS ON FRIDAY THE 13TH
Why? China's latest annualized GDP estimate (+7.6%) was not as bad as forecasters expected, and Q2 results from JPMorgan and Wells Fargo were encouraging, even as Moody's cut Italy's credit rating Friday to two notches above junk level. After its 204-point Friday gain, the DJIA settled at 12,777.09. The NASDAQ ended Friday at 2,908.47, while the S&P 500 closed at 1,356.77. Across the week, the Dow went +0.04%, the S&P +0.15% and the NASDAQ -0.98%. (2,3,4) |
| Market Summary |
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% Change |
Y-T-D |
1Yr Chg |
5-Year Avg | |
DJIA |
+4.58 |
+2.29 |
-1.63 | |
NASDAQ |
+11.64 |
+3.99 |
+1.49 | |
S&P 500 |
+7.89 |
+2.96 |
-2.52 |
(Source: msn.money.com, bigcharts.com, treasury.gov, treasurydirect.gov - 7/13/12). 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 - www.reuters.com/article/2012/07/13/usa-economy-
idUSL2E8ID23U20120713 [7/13/12]
2 - money.msn.com/market-news/post.aspx?post=96140b6
7-efa5-49c8-9ffc-85cd17eaea41 [7/13/12]
3 - www.cnbc.com/id/48174616 [7/13/12]
4 - montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [7/13/12]
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 |
"People often say that motivation doesn't last. Well, neither does bathing - that's why we recommend it daily."
Zig Ziglar |
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Riddle of the Week
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Note this alphabetic progression: B, C, D, E, G. What letter should then follow as the sixth letter in this successive series?
Last week's riddle:
may be red, green or yellow. Eat me, and you may stay a healthy fellow. My interior is white; I don't give off light. What am I?
Last week's answer:
An apple |
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Karl Frank was interviewed by 9News on March 28th, 2012 regarding "3 Things You Should Do if You Win the Mega Millions Lottery". | |
Click Here to View Video
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Karl Frank In Investment Advisor Magazine |
 | | Investment Advisor - November 2011 |
Investment 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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