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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).
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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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(614) 888-2117 | (800) 288-2117
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Advisory services offered through Capital Analysts. or Lincoln Investment, Registered Investment Advisors. Securities offered through Lincoln Investment, Broker Dealer, Member FINRA/ SIPC. (www.lincolninvestment.com). Shore Morgan Young Wealth Strategies and the above firms are independent, non-affiliated entities. Past performance is not indicative of future results. Treasury notes (T-notes) are intermediate securities with maturities of 1 to 10 years. Denominations range from $1000 to $1 million or more. The notes are sold by cash subscriptions, in exchange for outstanding or maturing government issues, or at auction. S&P 500 Index is an index of 500 of the largest exchange-traded stocks in the US from a broad range of industries whose collective performance mirrors the overall stock market. An index is unmanaged and no one can invest directly in an index. This e-mail is a market commentary and is being provided for educational purposes only. It is not a solicitation or a recommendation to buy or sell any security or act on any strategy. This e-mail may include forward-looking statements that are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Capital Analysts, Lincoln Investment. and your advisor do not provide tax or legal advice services. This communication has been written by Michael A. Higley, and provided by your advisor as an educational service. Any comments, opinions or facts listed are those of Mr. Higley. Information is based on sources believed to be reliable, however their accuracy or completeness cannot be guaranteed.
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