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Good morning!

 

What was already the 2nd worst week for the S&P 500 during the year got a lot more complicated as equity trading in the United States was concluding last Friday (11/13/15).  A series of 6 well coordinated attacks across Paris beginning at 9:30 P.M. local time (3:30 P.M. ET or just 30 minutes before the close of trading in New York City) killed 132 people and wounded 350+.  The deadliest day in France since WWII forced French President Francois Hollande to close the borders of his country and declare a state of national emergency.  Islamic State claimed credit for the attacks, described as retaliation for France's role in US-led bombing of Islamic State locations in Syria.  European leaders, already faced with the crush of Syrian refugees fleeing the horrors of their 4 � year old civil war, are now confronting an enemy willing to attack "soft targets" (e.g., stadiums, shopping malls, schools) with suicide bombers (source: BTN Research).

 

Regional Fed bank presidents from New York, St. Louis, San Francisco and Richmond all made speeches last week that called for a rate hike at the Fed's final meeting of the year scheduled for December 15-16.  The Fed cut short-term rates to near zero on 12/16/08 at the depths of the 2008 global financial crisis (source: Federal Reserve). 

 

The price of a barrel of oil dropped to $40.74 at the end of the week (down 24% in 2015), near the calendar year's low close of $38.24 set on 8/24/15.  The perfect storm of a global oversupply of oil, a slackening demand from China, and a rising dollar (making oil more expensive for overseas buyers) is crushing oil prices, a combination of events that may not abate anytime soon (source: BTN Research).




Notable Numbers for the Week:
 
  • INCREASE EVERYONE - Individual income taxes paid by taxpayers to the IRS would have to increase by +28% in order to eliminate our $439 billion deficit from fiscal year 2015 (source: Treasury Department).  
     
  • CRAZY NUMBERS - A child born in 2015 that begins kindergarten in the fall of 2020 would attend college between the years of 2033 and 2037.  If that child attended an average public in-state 4-year college and if the annual price increases for public colleges experienced over the last 30 years (+5.6% per year) continued into the future, the aggregate 4-year cost of the child's college education (including tuition, fees, room & board) would total $224,887 or $56,222 per year (source: College Board).
  • IMPACT OF LOW RATES - With still 1 � months to go in calendar year 2015, more money has been raised in the United States through corporate debt offerings ($815 billion) than in any year in our nation's history.  The old record ($746 billion) was set in calendar year 2014 (source: Dealogic).
  • GENDER SPECIFIC - 67% of the 5.1 million Americans suffering from Alzheimer's disease in the United States today are women (source: Brigham and Women's Hospital).

 

   
Sincerely,

Lew Shore, Jon Morgan, and Marya Young 

Shore Morgan Young Wealth Strategies
300 West Wilson Bridge Road, Suite 310
Worthington, Ohio 43085
614-888-2117 office
800-288-2117 toll free
614-888-2023 fax
smy@shoremorganyoung.com 
  
  
  

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