The Miller Financial Group
The Rally Continues 
Weekly Update - October 28, 2013
In This Issue
Markets extended their post-deal rally for another week, putting up several new records: The S&P 500 closed out the week at another all-time high, while the Nasdaq ended at a 13-year high. No records yet for the Dow, but it's putting up a good fight, gaining 5.4% over the last 13 trading sessions. For the week, the S&P 500 gained 0.88%, the Dow increased 1.11%, and the Nasdaq grew 0.74%.[1]
After a delay of several weeks, investors finally got a look at September's jobs report and the news was mixed. While the unemployment rate dropped to 7.2%, hiring appears to have slowed. Employers added just 148,000 new jobs in September, well below the 180,000 that economists had expected.[2]
 
On a more positive note, third quarter earnings have been slightly better than expected with earnings growth averaging 6.8% among the 243 S&P 500 companies that have already reported in. So far, 68% have beaten earnings estimates and 54% have beaten revenue estimates, trends that are above the historical averages. However, with the price-to-earnings ratio (a broad measure of the value of stocks) of the S&P 500 currently above its long-term average, some analysts are debating how much higher the market can go if the pace of earnings growth doesn't pick up.[3]

Weak economic data means that the Federal Reserve is unlikely to make any changes to its policy of quantitative easing at this week's FOMC meeting. Instead, they'll pore over the economic data to see how badly Washington's battles have hurt the U.S. economy. Consumer and business confidence may suffer lasting harm after the shutdown, especially as the current deal only postpones the fight until the New Year. Making matters worse, the shutdown interrupted regular data-gathering and analysis functions, muddying the economic picture for Fed policymakers. Some analysts believe that they could stand pat the rest of the year, delaying a taper until March, after the next round of fiscal debates and the new Fed Chairman takes over.[4]

Investors may be in for choppy waters this week as analysts struggle to parse economic data that's muddled by seasonal factors as well as disruption caused by the government shutdown. Earnings will also be front and center as nearly a quarter of S&P 500 companies are due to report, including heavy hitters like Apple (AAPL), General Motors (GM), and Exxon (XOM.) While no major action is expected out of the two-day Fed FOMC meeting, a surprise could cause additional market volatility.

As always, if you have any questions about how recent events may affect your investments, please reach out, we'd be delighted to speak with you.

ECONOMIC CALENDAR:
Monday: Industrial Production, Pending Home Sales Index, Dallas Fed Mfg. Survey
Tuesday: Producer Price Index, Retail Sales, S&P Case-Shiller HPI, Business Inventories, Consumer Confidence
Wednesday: ADP Employment Report, Consumer Price Index, EIA Petroleum Status Report, 7-Yr Note Auction, FOMC Meeting Announcement
Thursday: Jobless Claims, Chicago PMI
Friday: Motor Vehicle Sales, PMI Manufacturing Index, ISM Mfg. Index





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. Corporate bond performance is represented by the DJCBP. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.

HEADLINES:

U.S. construction spending reaches 4� year high. August construction spending increased 0.6%, the highest level since April 2009, largely because of a rise in public construction projects.[5]  

Consumer sentiment drops after government shutdown. Sentiment among U.S. consumers dropped in October to its lowest level since the Fiscal Cliff days as Americans worried about congressional dysfunction. Consumers are also worried about how the budgetary impasse may have affected fourth-quarter growth.[6]

Wholesale inventories rose in August. Inventories rose 0.5% in August, the biggest jump since January, indicating that business experienced a robust summer shopping period. Inventory growth was boosted by increases in stocks of autos and professional equipment.[7]

UK economy grows at fastest pace since 2010. Britain's economy picked up speed in the third quarter, growing 0.8%, driven by growth in the services sector and rising housing prices. The unexpected growth gives Britons hope that their economic recovery is picking up steam.[8]


Quote Of The Week
Quote Of The Week
Fountain Pen
 
"The best and most beautiful things in the world cannot be seen or even touched- they must be felt with the heart." 
 
- Helen Keller 
Recipe Of The Week
Recipe Of The Week
Fork and Knife
Turkey and Pesto Sandwich 


Pesto and crusty bread fancy up a turkey sandwich. 
Recipe from RealSimple.com.
Ingredients:

1 loaf soft French bread (12 ounces), split
1/3 cup store-bought pesto
8 ounces sliced roasted turkey
4 ounces sliced Swiss cheese
1/4 medium red onion, thinly sliced
3 tablespoons olive oil
2 tablespoons red wine vinegar
Kosher salt and black pepper
1 small head red leaf lettuce, leaves torn into bite-size pieces (6 cups)
1 avocado, cut into bite-size pieces

Directions:

1. Spread the bottom half of the loaf with the pesto. Top with the turkey, cheese, and onion. Place the top half with the bottom half and cut into 4 pieces. Dividing evenly, brush the outside of the sandwiches with 1 tablespoon of the oil.

2. Heat a grill pan over medium heat and cook the sandwiches, pressing down occasionally, until the bread is crisp and the cheese has melted, 5 to 6 minutes per side.

3. Meanwhile, in a large bowl, whisk together the vinegar, the remaining 2 tablespoons of oil, and � teaspoon each salt and pepper. Add the lettuce and avocado and toss to combine. Serve with the sandwiches.



Tax Tips
Tax Tips
Document
Tax Notice? Here's What to Do 
 
Each year the IRS sends out millions of notices to taxpayers. Fortunately, many are easy to resolve. Here's what to do if you receive a letter or notice from the IRS:

1. Don't panic. Follow the instructions in the letter and consult your tax professional for help.

2. Most notices cover a specific issue about your account or tax return. It may request payment of taxes, notify you of a change to your account or ask for additional information.

3. If you receive a notice about a correction to your tax return, you should review it carefully. You usually will need to compare the information in the notice to the entries on your tax return.
  • If you agree with the correction, you usually don't need to reply unless a payment is due.
  • If you don't agree with the correction the IRS made, it's important that you respond as requested. Respond to the IRS in writing to explain why you disagree. Include any documents and information you wish the IRS to consider, along with the bottom tear-off portion of the notice.
4. If you have questions, call the telephone number in the upper right corner of the notice or consult your tax professional. When you call, have a copy of your tax return and the notice available.

5. Keep copies of any correspondence with your tax records.
 
Golf Tip
Golf Tip
Golfer

Tools for Better Putting


A carpenter's chalk-line is a great putting aid to keep in your golf bag. The chalk-line is useful to help you with your alignment and stroke. Find a straight six to ten foot putt on a practice green. Snap a chalk-line from the hole back to desired distance. Put a ball on the line and make sure your putter and body are lined up properly.  Try to roll the putt right up the chalk-line. Source: PGA Golf Tip of the Day

Healthy Lifestyle
Healthy Lifestyle
Medical Cross

Go "Fragrance Free"


It's very common to try out a new lotion or soap containing the curious ingredient "fragrance." Unfortunately, skin care companies frequently use synthetic fragrances that may bother people with sensitive noses or issues with migraines. If you or someone in your family is sensitive to synthetic chemicals, stick with "fragrance-free" products.

Green Living
Green Living
Leaf

 Turn Bleach Bottles Into Scoops


Don't throw away that bleach bottle! With a little modification it can become a handy scoop for cat litter, mulch, potting soil, and many other uses. Empty and rinse the bottle, cut it crossways, throw away the base, and use the top part with a convenient handle as a scoop. It's generally not recommended to use a bleach scoop for food.

 


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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 Dow Jones Corporate Bond Index is a 96-bond index designed to represent the market performance, on a total-return basis, of investment-grade bonds issued by leading U.S. companies. Bonds are equally weighted by maturity cell, industry sector, and the overall index.

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.

These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative, Broker dealer or Investment Advisor, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer or Investment Advisor gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

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Robert G. Miller, CFP� , RFC, LUTCF
The Miller Financial Group
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561-353-3700
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