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Dow, S&P, Nasdaq All Rise – March 18, 2019

The Week on Wall Street

The big story last week was the sudden grounding of Boeing 737 Max 8 and 9 passenger jets in dozens of countries. The financial effects of this ban could potentially impact the airline industry and segments of the economy for months.1https://www.cnbc.com/2019/03/13/boeing-shares-fall-after-report-says-us-expected-to-ground-737-max-fleet.html

While the news created a headwind for the Dow Industrials, stocks managed to post solid gains for the week. The Nasdaq Composite rose 3.12%; the S&P 500, 2.46%; the Dow, 2.25%.2https://quotes.wsj.com/index/SPX,3https://quotes.wsj.com/index/DJIA,4https://quotes.wsj.com/index/NASDAQ

Bullish sentiment was also evident overseas. Looking at the MSCI EAFE index, international stocks advanced 1.93%.5https://quotes.wsj.com/index/XX/990300/historical-prices

Trade Meeting Delayed

Wall Street expected President Trump and Chinese President Xi to discuss trade issues this month. Thursday, Bloomberg reported that their talk had been postponed, with no firm date ahead.6https://www.bloomberg.com/news/articles/2019-03-14/china-u-s-said-to-push-back-trump-xi-meeting-to-at-least-april

Muted Inflation

The latest Consumer Price Index showed just a 1.5% rise in overall consumer costs in the year ending in February.

This number does not suggest an overheating economy. During a 60 Minutes interview last week, Federal Reserve Chairman Jerome Powell said the central bank did “not feel any hurry” to make a rate move.7https://www.reuters.com/article/us-usa-economy-inflation-idUSKBN1QT1MF

Tax Tip

If you turned 70½ last year, April 1 is your final deadline to receive your initial Required Minimum Distribution (RMD) from a traditional IRA, SEP-IRA, SIMPLE IRA, or employer-sponsored retirement plan. If you take your initial RMD from these retirement accounts this year, you must receive your second RMD from them by December 31, 2019.8https://www.irs.gov/newsroom/tax-time-guide-seniors-who-turned-70-and-a-half-last-year-must-start-receiving-retirement-plan-payments-by-april-1

Robert Roman
CEO, Managing Director
MGO | Wealth Advisors

THE WEEK AHEAD:

KEY ECONOMIC DATA

Wednesday: The Federal Reserve wraps up its two-day policy meeting.

Friday: February existing home sales.

Source: Econoday / MarketWatch Calendar, March 15, 2019

The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision. The release of data may be delayed without notice for a variety of reasons, including the shutdown of the government agency or change at the private institution that handles the material.

THE WEEK AHEAD: COMPANIES REPORTING EARNINGS

Tuesday: FedEx (FDX), Michaels Companies (MIK)

Wednesday: General Mills (GIS), Micron Technology (MU)

Thursday: ConAgra Brands (CAG), Darden Restaurants (DRI), Nike (NKE)

Source: Morningstar.com, March 15, 2019

Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.


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“Never discourage anyone…who continually makes progress, no matter how slow.”

– Plato

    tax_banner

    Pensions and Annuities: What’s Taxed?

    Depending on the types of retirement benefits you receive, they could be taxable. Here are some basics:

    Fully Taxable Payments

    The pension or annuity payments that you receive are fully taxable if you don’t have an investment in the contract because:

    • You didn’t contribute anything to your pension or annuity
    • Your employer didn’t withhold contributions from your salary
    • You have received all your contributions tax free in prior years

    Partially Taxable Payments

    If you made after-tax contributions to your pension or annuity, your pension payments are partially taxable. You don’t pay taxes on the portion of the payment that’s a return of the after-tax amount you paid.

    Additional 10% Tax on Early Distributions

    Receiving pension or annuity payments before age 59½ may subject you to an additional 10% tax on early distributions. The additional tax doesn’t apply to the portion of a distribution that is tax-free or distributions made:

    • As a part of a series of substantially equal periodic payments beginning after your separation from service
    • Because you’re totally and permanently disabled
    • On or after the death of the plan participant or contract holder
    • After your separation from service and in or after the year you reached age 55

    * This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

    Tip adapted from IRS.gov9https://www.irs.gov/taxtopics/tc410

    golf_banner

    Want a Longer, Cleaner Drive? Grab a Towel.

    Unlike most of the clubs which require a downward hit on the ball for good contact, the driver requires an upward strike. Unfortunately, most amateur golfers do the opposite, catching the ball when the club is still moving downward – leading to pop-ups and less-than-impressive distance. This might sound a little strange, but this is when you go grab a towel.

    This isn’t a new tip, but it is an effective one. Next time you’re practicing your tee shots, take a rolled-up towel and place it a few inches in front of the ball. As you try to avoid the towel, your body will naturally hit higher “up” on the ball.

    Changing your angle of attack in this way will create optimal launch conditions for a truly awe-inspiring drive.Tip courtesy of Alison Curdt, PGA | Golf Tips Magazine10https://www.golftipsmag.com/instruction/driving/try-towel-drill-for-longer-drives/

    healthy_banner

    Intermittent Fasting Benefits

      Giving yourself a fasting period each day, plus a limited window of time that you do eat, may be seriously beneficial to your health. Intermittent fasting involves time periods in which you eat and alternating ones in which you don’t. For example, if you have your last meal of the day at 5 pm, and you don’t eat until 9 am the next day, that is a 16-hour cycle of fasting and an 8-hour cycle of eating. Here are some evidence-based benefits:

      Weight loss

      You’ll eat fewer meals, take in fewer calories, enhance hormone function, and reduce insulin levels to more efficiently use fat for energy. Your metabolic rate can increase too.

      Reduction in blood sugar levels

      Intermittent fasting may reduce fasting blood sugar and protect against kidney damage.

      Resistance to oxidative stress

      Studies have shown that intermittent fasting can enhance the body’s resistance to the oxidative stress that could lead to aging and chronic disease.

      Tip adapted from Healthline11https://www.healthline.com/nutrition/10-health-benefits-of-intermittent-fasting#section1

      green_banner

      Where’s My Recycling Really Going?

      You may be recycling items that are dirty and have multiple types of materials, which are difficult to separate. Even though you have good intentions, there’s a chance that the items you’re trying to recycle could be going straight to the landfill, since these items need to meet certain cleanliness and material requirements in order to be processed correctly by a recycling center. Check out these tips for more streamlined recycling.

      Plastics: Plastics numbered 3 to 7, used to package products such as yogurt, butter, and cooking oils, are no longer accepted.

      Greasy takeout containers and pizza boxes: Even recyclable plastic takeout containers will go to the landfill unless they’re clean. Pizza boxes often cannot be recycled, since the oil can’t be separated from the cardboard.

      Plastic bags: They cause a nightmare for recyclers, since they stop up recycling machinery. Try taking them to plastic bag drop-off locations, where they’ll be sent to special recycling facilities capable of processing them appropriately.

      Tip adapted from The New York Times12https://www.nytimes.com/2018/05/29/climate/recycling-wrong-mistakes.html

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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.

      International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.

      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 indices from Europe, Australia and Southeast Asia.

      The S&P U.S. Investment Grade Corporate Bond Index contains U.S.- and foreign-issued investment-grade corporate bonds denominated in U.S. dollars.

      The SPUSCIG launched on April 09, 2013. All information for an index prior to its Launch Date is back-tested, based on the methodology that was in effect on the Launch Date. Back-tested performance, which is hypothetical and not actual performance, is subject to inherent limitations because it reflects application of an Index methodology and selection of index constituents in hindsight. No theoretical approach can take into account all of the factors in the markets in general and the impact of decisions that might have been made during the actual operation of an index. Actual returns may differ from, and be lower than, back-tested returns.

      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.

      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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