The Miller Financial Group
Markets up on Syria Resolution and Tapering Hopes
Weekly Update - September 16, 2013
In This Issue

Markets closed out a solid week, boosted by a diplomatic solution in Syria and hopes that a big tapering move by the Fed may be avoided. For the week, the S&P 500 gained 1.98%, the Dow rose 3.04%, and the Nasdaq grew 1.70%.[1]
Tensions over Syria have decreased significantly as the U.S. and Russia agreed on a proposal to eliminate Syria's chemical weapons arsenal, avoiding the immediate need for military intervention. While there are many technical issues to explore, investors reacted with relief to the news that military action may be unnecessary.[2] 

Economic data was a mixed bag last week. Consumer sentiment dropped sharply to a five-month low in September as higher interest rates took a bite out of confidence. Americans are worried that rising rates will put a damper on the housing market and cool economic growth. Respondents were also apprehensive about the Fed's fiscal policy and the effect it will have on the job market.[3] Although demand for big-ticket items expanded, retail sales rose less than expected in August as Americans cut back on purchases of clothing, sports equipment, and other items. Retail sales grew only 0.2% instead of the 0.4% that economists had expected. This report captured part of the back-to-school shopping season, the second largest of the year, and shows that third quarter economic growth may be slowing down.[4] On the other hand, the fact that Americans are still making major purchases of automobiles and appliances suggests that there is still hope for the all-important holiday shopping season.

Months of anticipation will finally come to a head this week at the Fed FOMC meeting on Tuesday and Wednesday. The Fed will make its formal announcement on Wednesday afternoon and Fed Chairman Ben Bernanke will give additional details in his follow-up speech. The Fed has telegraphed its intentions to taper, but investors have convinced themselves that we're looking at "tapering light," i.e. a cut of $10 billion or so in Treasury purchases and this is already priced into the market. Recent economic data has been mixed, leading analysts to believe that any tapering will be modest in scope. However, stocks are already close to historic highs and volatility is currently low, meaning that any surprises could spook markets into a selloff. As always, we'll continue to monitor the situation and keep you informed.

ECONOMIC CALENDAR:
Monday: Empire State Mfg. Survey, Industrial Production
Tuesday: Consumer Price Index, Treasury International Capital, Housing Market Index
Wednesday: Housing Starts, EIA Petroleum Status Report, FOMC Meeting Announcement, FOMC Forecasts, Chairman Press Conference
Thursday: Jobless Claims, Existing Home Sales, Philadelphia Fed Survey
 
 
 
 
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized. Sources: Yahoo! Finance and Treasury.gov. International performance is represented by the MSCI EAFE Index. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.

 

Oil prices fall on Syria deal. After fears of an imminent crisis pushed crude oil prices above $117, news of a diplomatic solution brought prices back down to earth. Weak global demand also exerted a downward pull on prices, bringing them near $108.[5]

 

California approves $10 minimum wage. In a move supported by low-wage workers, lawmakers approved a measure that would raise the state's minimum wage from $8 to $9 in July 2014, and to $10 by 2016. The current highest state minimum wage is $9.19 in Washington state.[6]

 

China data points to economic rebound. Industrial output, investment, and retail sales all strengthened in August in the world's second-largest economy. These new results suggest that the Chinese economy has rebounded after a shaky first half of 2013. However, too much reliance on domestic investment and debt could threaten long-term prosperity.[7]

 

Fewer homes enter foreclosure in August. The number of houses entering foreclosure proceedings fell to the lowest level in eight years in August, down 44% from the year before. The national slowdown in foreclosures reflects an improving housing market, steady job growth, and fewer defaulted loans.[8]

 

 

 

Quote Of The Week
Quote Of The Week
Fountain Pen

 

 "You must do the things you think you cannot do."  

- Eleanor Roosevelt   
 
Recipe Of The Week
Recipe Of The Week
Fork and Knife

Classic Chicken Parmesan

 
   
Recipe from FoodNetwork.com

Ingredients:


2 skinless, boneless chicken breasts (about 10 ounces each)  
1/4 cup plus 1 tablespoon extra-virgin olive oil
2 cloves garlic, finely chopped
1/4 teaspoon red pepper flakes
1 15-ounce can tomato puree
1/2 cup plus 2 tablespoons grated parmesan cheese
1/4 cup finely chopped fresh basil
1/2 cup all-purpose flour
Kosher salt and freshly ground pepper
3 large eggs
1 1/4 cups grated mozzarella cheese (about 6 ounces)

 

Directions:

 

1. Slice the chicken breasts in half horizontally to make 4 thin cutlets. Put between 2 pieces of plastic wrap and pound with a meat mallet or heavy skillet until 1/4 inch thick.

2. Heat 1 tablespoon olive oil in a medium pot over medium heat. Add the garlic and red pepper flakes and cook, stirring, until the garlic softens, about 1 minute. Add the tomato puree, then rinse out the can with 1 cup water and add to the pot. Simmer until the sauce just thickens, about 10 minutes. Whisk in 1/4 cup parmesan and the basil. Spread 1/2 cup of the sauce in a 3-quart baking dish. Preheat the broiler.

3. Meanwhile, combine the flour and 1/2 teaspoon each salt and pepper in a shallow dish. Beat the eggs with 1/4 cup parmesan in another shallow dish. Heat 2 tablespoons olive oil in a large skillet over medium-high heat. Dredge 2 chicken cutlets in the flour, tapping off the excess, then dip in the egg mixture. Carefully lay in the skillet and fry until golden brown and just cooked through, 2 to 3 minutes per side. Transfer to the baking dish. Add the remaining 2 tablespoons olive oil to the skillet and repeat with the remaining 2 chicken cutlets. Add to the baking dish.

4. Combine the mozzarella and the remaining 2 tablespoons parmesan in a bowl. Sprinkle half of the cheese mixture on the chicken, then top with the remaining sauce and the remaining cheese mixture. Broil until the cheese melts, about 2 minutes.

 

 

 

Tax Tips
Tax Tips
Document

Selling Your Home This Year?


If you're selling your primary home this year, the IRS has some helpful tips for you:
  • If you sell your home at a gain, you may be able to exclude part or all of the profit from your income. This rule generally applies if you've owned and used the property as your main home for at least two out of the five years before the date of sale.
  • You normally can exclude up to $250,000 of the gain from your income ($500,000 on a joint return). This excluded gain is also not subject to the new Net Investment Income Tax, which is effective in 2013.
  • If you can exclude all of the gain, you probably don't need to report the sale of your home on your tax return.
For more information on this topic, see Publication 523, "Selling Your Home", at IRS.gov.

Golf Tip
Golf Tip
Golfer

Analyze Club Trajectory

 

Each of your 14 clubs is a different tool designed to help you achieve a lower score, but many golfers don't know how high or far each club will send the ball. The next time you're unsure, try this exercise with an iron or wedge:

 

Step on the clubface to see the angle created by the shaft. If you make solid contact with the ball, it will take off at this trajectory. Compare several of your irons this way and note that the shot that goes higher will go shorter, and the club that sends a ball lower will carry farther. Tip from Golf Digest 

 

Healthy Lifestyle
Healthy Lifestyle
Medical Cross

Hand Over That Video Game

 

Research has found that playing video games may help older people reverse some of the effects of age-related decline in memory and focus. After four weeks of training, some of the study participants in their 80s beat untrained 20-year-olds! It might be time to borrow that video game and get to work.  

 

Green Living
Green Living
Leaf

Use Green Tissues


Most popular brands of tissue are made with harsh chemical bleaches and may be made from wood pulp from endangered forests. Consider purchasing tissues that clearly state "no bleaching" or are made from "100% recycled paper" and carry the Forest Stewardship Council (FSC) accreditation. 


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Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

 

Diversification does not guarantee profit nor is it guaranteed to protect assets.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

  

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

  

The Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of stocks of technology companies and growth companies.

  

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

  

The S&P/Case-Shiller Home Price Indices are the leading measures of U.S. residential real estate prices, tracking changes in the value of residential real estate. The index is made up of measures of real estate prices in 20 cities and weighted to produce the index.

  

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

  

Google Finance is the source for any reference to the performance of an index between two specific periods.

  

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

  

Past performance does not guarantee future results.

  

You cannot invest directly in an index.

  

Consult your financial professional before making any investment decision.

  

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

  

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[1] http://briefing.com/investor/markets/weekly-wrap/weekly-wrap-for-september-9-2013.htm 


[2] http://www.cnbc.com/id/101034528 


[3] http://www.cnbc.com/id/101029653 


[4] http://www.cnbc.com/id/101032245 


[5] http://www.cnbc.com/id/101031644 


[6] http://www.cnbc.com/id/101032311 


[7] http://www.ft.com/intl/cms/s/0/b44cfce8-19de-11e3-b3da-00144feab7de.html#axzz2eufiVmLL 


[8] http://www.cnbc.com/id/101028645 

  

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