Shore Morgan Young logo
Good morning!


American employers added +151,000 new workers in August 2016, on top of a revised +275,000 new hires in July. Our nation's 4.9% jobless rate is less than half the 10.1% unemployment rate in the 19-nation Eurozone. Other than touching 4.7% in May 2016, the United States is currently reporting its lowest jobless rate since the 4th quarter 2007, just before the start of the global real estate crisis.   The 10.1% unemployment rate in the Eurozone is its lowest since July 2011 (source: Department of Labor).      
  
It was 8 years ago this week (9/07/08) that Treasury Secretary Hank Paulson announced the government's plan to take control of mortgage giants Fannie Mae and Freddie Mac. The Treasury Department initially pledged up to $200 billion of financial support in anticipation of future mortgage defaults, a commitment that was doubled to $400 billion just 10 months later. However Fannie and Freddie actually received just $187 billion of taxpayer aid, but have remarkably paid back $247 billion for a $60 billion profit for taxpayers, equal to a +3.5% annualized gain (source: Treasury Department).
  
The yield on the 10-year note closed last week (Friday 9/02/16) at 1.60%, the 160th consecutive trading day that the yield has closed below 2%. That's the 2nd longest stretch below 2% in the history of the USA (behind a 187-day run that ended in January 2013). In fact, until the yield on the 10-year note dropped to 1.98% on 9/06/11, the United States had gone more than 70 � years (since February 1941) without 10-year rates below 2% (source: BTN Research).


Notable Numbers for the Week:


  • MORE THAN TWO-THIRDS - The total return of the S&P 500 over the last 5 calendar years (2011-2015) is +80.7% (total return). The best 13 trading days during the 5 years (i.e., 13 days out of 1,258 total trading days) produced a +55.1% gain. Thus, 1% of the trading days over the last 5 years were responsible for 68% of the index's total return (source: BTN Research).       
  • JUST ONE OPTION AVAILABLE - 36% of the "geographic rating areas" in the United States are projected to have just 1 health insurance company offering coverage through state health insurance exchanges in 2017 (source: Avalere Health). 
  • WHY SO LONG? - An individual stock trade "settles" in 3 business days, i.e., the stock buyer must deliver cash and the stock seller must deliver the securities within 3 business days. 1 year from today (9/05/17), an individual stock trade will "settle" in just 2 business days (source: Securities and Exchange Commission
  • WEST COAST WATER - 21% of California is currently experiencing an "exceptional drought," down from 46% a year ago. Drought conditions are measured on a continuum from "moderate" to "severe" to "extreme" to "exceptional" (source: U.S. Drought Monitor






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
  
  
  

(614) 888-2117 | (800) 288-2117

View our profile on LinkedIn

Lew
View our profile on LinkedIn

Jon
View our profile on LinkedIn

Marya

We cherish introductions to prospective client families as our highest compliment. You may use the Forward email link at the bottom of this message to share this content.

Email programs can have various distinct ways of processing and displaying incoming emails. To view the content above in its original format, please click here. You are receiving this email because of your relationship with Shore Morgan Young Wealth Strategies. To ensure that you continue to receive emails from us, add [email protected] to your address book today. 


 
Important Notice:
 
We do not accept trade requests by fax, email, or voicemail.
 
Electronic mail sent through the Internet is not secure. We recommend that you do not send confidential information to us via electronic mail, including social security numbers, and personal identification numbers. Delivery, and timely delivery, of electronic mail is not assured. We, therefore, strongly recommend that you do not send to us time-sensitive or action-oriented messages via electronic mail, including authorization to "buy" or "sell" a security or instructions to conduct any other financial transaction. However, if you choose to do so, we will confirm receipt before your order is considered accepted. If you do not receive this confirmation, please contact our office by telephone to place your order. 
 
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. 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.  





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. Investors cannot invest directly in
an index.




Treasury bills (T-bills) are short-term securities with maturities of one year or less issued at a discount from face value. Treasury bills are the primary instrument used by the Federal Reserve in its regulation of money supply through open market operations.


A 10-year treasury note is a debt obligation issued by the United States government that matures in 10 years. A 10-year- Treasury note pays interest at a fixed rate once every six months and pays the  face value to the holder at maturity.


Fannie Mae (FNMA) is a government-sponsored enterprise (GSE) that was created in 1938 to expand the flow of mortgage money by creating a secondary mortgage market. Fannie Mae is a publicly traded company which operates under a congressional charter that directs Fannie Mae to channel its efforts into increasing the availability and affordability of homeownership for low-, moderate- and middle-income Americans.


Freddie Mac (FHLMC) is a stockholder-owned, government-sponsored enterprise (GSE) chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing for middle income Americans. The FHLMC purchases, guarantees and securitizes mortgages to form mortgage-backed securities. The mortgage-backed securities that it issues tend to be very liquid and carry a credit rating close to that of U.S. Treasuries.




Shore Morgan Young Wealth Strategies | 300 West Wilson Bridge Road | Suite 310 | Worthington | OH | 43085