Greetings!
First, the eastern seaboard is facing what could be a natural disaster and second, you may want to know that one of our best bond managers left after 27 years, and our researchers are on top of the situation. Hurricane Sandy This week marks the first time that the US Stock Markets have closed unexpectedly since the terrorist attacks of 2001. Our thoughts and prayers go out to the folks affected by Hurricane Sandy, up and down the East Coast of North America and into the Carribean. In 2005, I had a chance to be in Houston right after Hurricane Rita wiped out downtown and took out the electricity over huge swaths of urban landscape. Where buildings used to be, I saw only concrete pads and huge tractor-trailer dumptrucks filled with debris. I remember marveling at the toughness of Texans and their "come back" spirit that they were able to continue with our large event, in the Omni, a hotel that didn't have a first floor after the flood had taken it out. Amazing! New Yorkers are just as tough and can roll up their sleeves with the best of them, so I expect life to be back to normal soon. Changes in One of Our Bond Fund Managers Last week, one of the money managers for Loomis Sayles quit her job after 27 years with the firm. Kathleen Gaffney's received an offer she couldn't turn down from Eaton Vance. Our researchers at Litman Gregory have already interviewed the bond fund's other manager, Dan Fuss, and we are assured that at this point in time it means no bad news for the fund or our investors. Investors with AIFS should know that we track more than just the returns of our funds. Our researchers know the money managers themselves. And when we hear of a dramatic change like this one, we are on high alert. If, in fact, our researchers find out something that causes us to make an investment change, we will make the change quickly. It's all part of the service we provide. |
| Lunch and Learn |
You might have heard the statistic that the average American gains between 7 and 10 lbs from Thanksgiving to New Years. This year, take advantage of expert tips and tricks for staying fit and healthy through the holidays.
Join us for our next Lunch and Learn featuring Priscilla Freed, a fitness expert, life coach, speaker, and author.
Priscilla, founder of Holistic Health Corp, a company whose mission is to change people's mindsets in order to transform their bodies. She offers classes in nutrition, fitness, and life coaching programs dedicated to changing people's lives.
Get Fit not Fat for the Holidays!
Date: Thursday November 8th, 11:30am - 12:30pm
Location: Our office, 9800 Mt. Pyramid Court, Suite 450
Englewood, CO 80112
Lunch will be provided.
or call 303-690-5070. Seating is limited.
Friends and colleagues are welcome to attend!
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| Weekly Economic Update | |
Q3 GDP READING SUGGESTS HEALTHIER ECONOMY The Commerce Department's initial third quarter estimate of annualized growth - 2.0% - was better than expected. Still, it fell short of the 2.5% pace analysts feel is needed to reduce the unemployment rate. Consumer spending, defense spending and residential real estate investment were the key factors behind the third quarter improvement - in fact, spending on homebuilding and home improvement rose more than 14% in the quarter. (1,2)
NEW HOME SALES, HOME SALE CONTRACTS INCREASE
September saw a 5.7% rise in new home buying, according to the Census Bureau. The annual projection of new home sales (389,000) paled in comparison to the 800,000+ pace of early 2007, but sales were still up 27.1% year-over-year to the highest level since April 2010. Elsewhere in the housing market, the National Association of Realtors reported an 0.3% gain in pending home sales last month.(3,4)
CONSUMER BAROMETER SEES OCTOBER GAIN
October's final Thomson Reuters/University of Michigan consumer sentiment index came in at 82.6, the best monthly reading since September 2007. Across 2003-2007, the index averaged 89.0; during the last recession, it averaged 64.2. (5)
STOCKS RETREAT, ALONG WITH GAS PRICES October may go in the books as the poorest month for stocks in some time. As of Friday's close, the S&P 500 was down 1.99% for the month. Major indices turned south last week - S&P 500, -1.48% to 1,411.94; NASDAQ, -0.59% to 2,987.95; DJIA, -1.77% to 13,107.21. Gas prices also dropped, however: AAA had the national average price per gallon at $3.58 Friday, down 3.8% for the week and 5.6% this month. (1,6,7) |
| Market Summary |
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% Change |
Y-T-D |
1Yr Chg |
5-Year Avg | |
DJIA |
+7.28 |
+10.43 |
-1.01 | |
NASDAQ |
+14.69 |
+12.72 |
+1.31 | |
S&P 500 |
+12.27 |
+13.68 |
-1.61 |
(Source: msn.money.com, bigcharts.com, treasury.gov, treasurydirect.gov -10/26/12). 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 - money.msn.com/market-news/post.aspx?post=8b58846a-
7feb-420a-9551-e2324bbc9bc6 [10/26/12]
2 - www.suntimes.com/business/15973988-420/us-economy-
accelerates-to-2-percent-growth-in-third-quarter.html [10/26/12]
3 - blogs.wsj.com/economics/2012/10/25/vital-signs-chart-
new-home-sales/ [10/25/12]
4 - www.reuters.com/article/2012/10/25/usa-economy-homes-
idUSL1E8LP59420121025 [10/25/12]
5 - www.bloomberg.com/news/2012-10-26/michigan-consumer-sentiment-index-increased-to-82-6-in-october.html [10/26/12]
6 - montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [10/26/12]
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 |
"You can only perceive real beauty in a person as they get older."
Anouk Aimée |
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Riddle of the Week
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A man tells you there are 12 seconds in a year. This sounds absurd, but in what sense is he correct?
Last week's riddle:
Holly finds herself in a room without windows, holes or even cracks in the walls. She doesn't have any tools and the door to the room is 4" thick and made of steel. Using only her hands, she manages to escape through the doorway. How does she do it?
Last week's answer:
The door is unlocked. |
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