Greetings!
Many money managers are prone to eccentricities, not the least eccentric is one of our favorites at A&I Financial Services LLC, Jeffrey Gundlach at Doubleline Capital. Here are a few tidbits from a recent interview with John Sullivan in Financial Advisor magazine:
When asked about the future, Gundlach quotes Mark Antony in Act Three, Scene Two of The Life and Death of Julius Caesar. Gundlach says, "If you have tears, prepare to shed them now." His concern, shared by many, is the unbridled spending of governments around the world and the incredible build-up of cash inside banks. He begins his investment decision making by looking at risks.
On a more positive note, Gundlach also described you, his client:
"Our clientele really is independent-minded; they think for themselves and really understand the way in which we think about risk, which is carefully," he says.
"We have a huge following in the very high-net-worth category, and that's where all the money is. We have the luxury of having our maximum appeal in the demographic that has all the money."
Whether or not you think of yourself as wealthy, we are invested alongside some of the most successful people in the country, and we benefit from the advice of outside the box thinkers like Gundlach. (9)
Next week, we'll look at another outside-the-box thinker, Warren Buffett. |
| In the News |
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Watch for Karl Frank's Interview
on 9 News KUSA
October 8, 2012
7:40 AM
Financial Planning Tips for Seniors |
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| Weekly Economic Update | |
CONSUMERS SPEND MORE - BECAUSE OF GAS PRICES
While the 0.5% August gain in consumer spending was the biggest in six months, it was mostly attributable to retail gas prices rising $0.28 for the month. The Commerce Department also noted a 0.3% drop in inflation-adjusted personal income in August, an occurrence unseen since November. Consumer spending on non-durable goods rose 1.7% in a month also marked by a 13.0% drop in durable goods orders - the biggest decrease in those bookings since January 2009, though core hard goods orders rose 1.1% last month. (1,2)
SEPTEMBER SEES MORE OPTIMISM
The Conference Board's monthly consumer confidence gauge jumped to 70.3 in September from its revised 61.3 mark in August. Economists polled by MarketWatch thought it would come in at 65.0; instead, it reached a 7-month high. The University of Michigan's final September consumer sentiment survey hit a 4-month peak of 78.3, a 4.0% improvement from August. (1,3)
EXISTING HOME PRICES RISE, NEW HOME SALES SLIP
The 1.2% annualized index gain in the S&P/Case-Shiller Home Price Index for July was the largest since August 2010. While new home sales fell 0.3% in August, the Census Bureau noted a 27.7% yearly gain in the category. At $256,900, the median new home price also hit its highest level since March 2007. Pending home sales slipped 2.6% in August, the National Association of Realtors stated. (2,4,5)
GREAT Q3 ENDS WITH DOWN WEEK
Last week, the Dow lost 1.05%, the NASDAQ lost 2.00% and the S&P 500 lost 1.33%. All of this aside, the Q3 performance of the major indices was terrific: Dow, +4.32% to 13,437.13; NASDAQ, +6.17% to 3,116.23; S&P, +5.76% to 1,440.67; Russell 2000, +4.88% to 837.45. The CBOE VIX fell 8.61% in the quarter. The launch of QE3 helped make September the third-best month for stocks (so far) in 2012. Oil ended the quarter at $92.01 a barrel, gold at $1,771.10 an ounce. (6,7,8) |
| Market Summary |
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% Change |
Y-T-D |
1Yr Chg |
5-Year Avg | |
DJIA |
+9.98 |
+22.03 |
-0.66 | |
NASDAQ |
+19.62 |
+25.07 |
+3.07 | |
S&P 500 |
+14.56 |
+25.16 |
-1.13 |
(Source: msn.money.com, bigcharts.com, treasury.gov, treasurydirect.gov - 9/28/12). 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.cnbc.com/id/49212032 [9/28/12]
2 - www.businessweek.com/news/2012-09-27/pending-sales-of-existing-homes-in-u-dot-s-dot-fell-2-dot-6-percent-in-august [9/27/12]
3 - articles.marketwatch.com/2012-09-25/economy/34071953_1_lynn-franco-confidence-readings-consumer-sentiment [9/25/12]
4 - www.sfgate.com/business/article/Case-Shiller-index-Home-values-climbing0inhp [9/25/12]
5 - www.lvrj.com/business/ap-photo-nybz130-171418791.html [9/26/12]
6 - www.cnbc.com/id/49210305 [9/28/12]
7 - www.cnbc.com/id/15839285 [9/28/12]
8 - montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [9/28/12]
9 - http://www.advisorone.com/2012/09/25/whats-jeff-gundlach-
thinking?utm_source=dailywire092512&utm_medium=enewsletter
&utm_campaign=dailywire&t=careers
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 |
"Complexity is your enemy. Any fool can make something complicated. It is hard to keep things simple."
Richard Branson |
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Riddle of the Week
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What 3 numbers can you add together and get the same result as when you multiply them together? (All 3 numbers are whole and positive and none of them are double-digit.)
Last week's riddle:
What lives above a star but never burns, has 11 neighbors, and can replace the letters P, Q, R or S in some cases?
Last week's answer:
The number 7 (on most telephone keypads) |
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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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