Major Indices Move Lower –
November 25, 2019
Stocks declined last week as mixed signals emerged about the progress of U.S.-China trade negotiations.
The three major Wall Street benchmarks all took weekly losses. The Dow Jones Industrial Average declined 0.46%; the S&P 500, 0.33%, the Nasdaq Composite, 0.25%. Also pulling back, the MSCI EAFE index, tracking developed stock markets outside the U.S. and Canada, retreated 0.69%.1https://www.wsj.com/market-data,2https://quotes.wsj.com/index/XX/990300/historical-prices
Nothing Conclusive Regarding Trade
As the market week ended, there was still haziness surrounding the state of U.S.-China trade discussions. Were negotiators on the cusp of a phase-one deal or further away?
Friday, President Trump told reporters that a deal was “very close,” but Chinese President Xi Jinping said that his country could decide to “fight back” against certain terms. Last week, a bill intended to support Hong Kong protesters advanced through Congress, and that development was not taken well in Beijing.3https://www.cnbc.com/2019/11/22/dow-futures-amid-us-china-trade-uncertainty.html,4https://www.cnbc.com/2019/11/22/hong-kong-rights-bill-unlikely-to-derail-us-china-trade-talks.html
The Fed Assesses the Economy
Federal Reserve officials gathered for their October meeting “generally saw the economic outlook as positive” according to minutes from the central bank’s October monetary policy meeting released Wednesday. Some of them termed the economy “resilient.”
The minutes also noted that the Fed would wait to assess the impact of its recent interest rate cuts and that any upcoming policy decisions might be data dependent.5https://www.marketwatch.com/story/fed-minutes-show-worries-about-economy-had-eased-a-bit-2019-11-20
Strength in the Housing Sector
Existing home sales improved 1.9% last month, by the estimation of the National Association of Realtors. Year-over-year, sales were up 4.6% through October, and the median sale price was $270,900, 6.2% above where it was 12 months earlier.
Wednesday, the Census Bureau said that single-family home construction increased for a fifth straight month in October. In addition, the pace of building permits for new homes hit a level unseen since 2007.6https://www.inman.com/2019/11/21/existing-home-sales-pick-up-in-october-after-slump-nar/,7https://www.marketwatch.com/story/permits-for-new-home-construction-hits-post-recession-record-high-in-october-2019-11-19
CEO, Managing Director
MGO | Wealth Advisors
THE WEEK AHEAD:
KEY ECONOMIC DATA
Tuesday: The Census Bureau issues its latest new home sales snapshot, and the Conference Board releases its November Consumer Confidence Index.
Wednesday: October consumer spending numbers appear from the Department of Commerce, and the Bureau of Economic Analysis publishes a new estimate of third-quarter economic expansion.
Source: Econoday, November 22, 2019
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. 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 WEEK AHEAD: COMPANIES REPORTING EARNINGS
Monday: Agilent (A), Hewlett-Packard (HPE), Palo Alto Networks (PANW)
Tuesday: Analog Devices (ADI), Dell Technologies (DELL), Vmware (VMW)
Wednesday: Deere & Co. (DE)
Source: Zacks, November 22, 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.
“Be thankful for what you have; you’ll end up having more.
If you concentrate on what you don’t have, you will never, ever have enough.”
– Oprah Winfrey
End-of-the-Year Tax Tips
With all the hustle and bustle of the holidays, taxes are likely the last thing on your mind. You have until April, right? Well, there are a few end-of-year tips that you should get ahead on now to save yourself time (and money) come April.
- Donate stock that has appreciated in value – You can donate stock that has appreciated in value that you’ve had for at least a year. This can result in significant income tax savings. Also, donating stock saves you more on taxes than donating cash because there’s no capital gains tax when these stocks are given to a nonprofit. You also save on future capital gains taxes.
- Increase your 401(k) contributions – You’re allowed to contribute up to $19,000 this year if you’re under 50 and $25,000 if you’re 50 and older, and contributing more to your 401(k) by the end of the year means that you will have a lower income tax. This is especially beneficial if you’re between tax brackets.
* 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 Kiplinger8https://www.kiplinger.com/slideshow/saving/T023-S002-money-moves-to-make-now-to-prepare-for-2020/index.html
Tips for Cleaning Your Grips
Lots of golfers make cleaning their grips a priority in the summer because their hands are sweating in the heat, but cleaning your grips in the winter is just as important because your hands may actually be drier than normal. Here are some easy tips when cleaning your grips:
- There are fancy solutions on the market that will help you clean your club grips, but all you really need is some good, old-fashioned soap and water. Dawn liquid soap is one of the best for getting off grease and grime.
- Make sure your water is super-sudsy. This will help you clean your grips more easily.
- Simply fill a bucket with sudsy soap and water, then use a clean cloth to collect some suds and rub them into your grip.
- Try to get more soap than water on the grip.
- Once you’ve scrubbed, run the grip under warm water. Don’t make the water too hot, as this can destroy the glue underneath your grip.
Cleaning your grips this time of year will help if your hands are dry while playing.
Tip adapted from Golf Monthly9https://www.golf-monthly.co.uk/features/the-game/how-to-clean-your-golf-clubs-and-grips-69550
Healthy Holiday Eating: Part 2
We’re back with more healthy holiday eating tips to help you navigate all the delicious food, without adding inches to your waistline.
- Take 10 – Before you go back for seconds, take a 10-minute break. It can take close to 20 minutes for your stomach to inform your brain you’ve reached satiety, so if you eat too quickly or go back for that second helping right after you’re done with your first, you might end up overeating. Instead, get up, walk around, and maybe even mingle for 10 minutes, then see if you’re still hungry.
- Eat a Pre-Party Snack – If you’re on your way to a holiday party, eat a healthy snack before you go, so you don’t arrive famished and want to eat everything in sight. The best pre-party snacks combine lean protein with complex carbohydrates, such as an apple and peanut butter, a turkey sandwich, or a couple hardboiled eggs.
- Dust Off Your Dancing Shoes – One of the most fun ways to work off a few extra calories is to hit the dance floor! After you’re done eating, take some time to get moving and enjoy the music. If you’re at a party without dancing, go for a walk with friends and family between dinner and dessert.
Tip adapted from Harvard Health10https://www.health.harvard.edu/blog/12-tips-for-holiday-eating-201212245718
Have a Green Thanksgiving
This Thanksgiving, think about the environment when you prepare your meal and have people over. Here are some tips on how to reduce waste, energy, and resources needed:
- Use reusable dinnerware instead of disposable options.
- Purchase the food locally when possible, and choose organic options when available. By using mostly local food, you reduce the energy needed to transport food. Plus, locally grown produce and meat tastes better!
- Speaking of meat, eat less of it when possible. The meat industry is the number one source of methane gas in our environment, and eating less meat can have a positive environmental impact in many ways.
- Get outside and enjoy the beautiful outdoors. This holiday is all about giving thanks, so step outside and show gratitude to Mother Nature for all her beauty. Even if you’re in the heart of the city, a walk outside does the body good.
Tip adapted from Harvard University11https://green.harvard.edu/tools-resources/green-tip/tips-green-thanksgiving
Share the Wealth of Knowledge!
Please share this market update with family, friends or colleagues. If you would like us to add them to our list, simply click on the “Forward email” link below. We love being introduced!
If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.
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.
By clicking on these links, you will leave our server, as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.
Headquartered in Newport Beach, California, MGO Wealth Advisors, LLC is a very different kind of investment management firm. more >>>
References [ + ]