Questions? Let's Talk

(888) 880-5724

Contact Us Online &
Sign Up for Email Updates

Markets Turn Jittery – August 14, 2017

Last week, rising tension between North Korea and the U.S. rattled the world’s markets. As the two countries traded tough words, concerns escalated and markets reacted emotionally to the news.1https://www.cnbc.com/2017/08/11/stocks-rise-for-the-first-time-4-days-after-tame-inflation-data.html Though stress is building internationally, we remain committed to focusing on the market fundamentals that drive long-term value.

In the coming days, we will publish a white paper outlining the details of how markets have reacted to other significant geopolitical events. History shows that markets can fall in the wake of alarming news but do recover, given time.2https://www.cnbc.com/2017/08/09/as-north-korean-tensions-simmer-heres-how-stocks-reacted-to-past-crises.html?__source=newsletter%7Ceveningbrief We encourage you to stay tuned for the white paper and talk to us if you have questions or concerns.

Amidst the pressure last week, volatility returned to markets—and all three major U.S. market indexes turned south.3https://www.cnbc.com/2017/08/11/stocks-rise-for-the-first-time-4-days-after-tame-inflation-data.html The Dow dropped 1.06%, the S&P 500 fell 1.43%, and the NASDAQ declined 1.50%.4http://performance.morningstar.com/Performance/index-c/performance-return.action?t=%21DJI&region=usa&culture=en-UShttp://performance.morningstar.com/Performance/index-c/performance-return.action?t=SPX&region=usa&culture=en-UShttp://performance.morningstar.com/Performance/index-c/performance-return.action?t=@CCO Global markets also reacted as the MSCI EAFE lost 1.59% for the week.5https://www.msci.com/end-of-day-data-search

Though international developments dominated headlines, economic news important to markets and investors continued to roll out. The data reflects a solid economy, but some possible headwinds are on the horizon. Here are the highlights:

What Is Ahead

Tense geopolitical headlines may continue, but there will be plenty of market news, too. Retail, manufacturing, and housing data will come out this week, and Friday’s August consumer sentiment numbers will be of interest.14http://wsj-us.econoday.com/byshoweventarticle.asp?fid=482600&cust=wsj-us&year=2017&lid=0&prev=/byweek.asp#top Though the markets may move with emotions, economic fundamentals should continue to be the base for long-term value.

No matter what questions you may have, we always welcome you to reach out and contact us. We are here to help.

Robert Roman
CEO, Managing Director
MGO | Wealth Advisors

ECONOMIC CALENDAR:

Tuesday: Retail Sales, Import and Export Prices, Housing Market Index, Business Inventories
Wednesday: Housing Starts
Thursday: Jobless Claims, Industrial Production
Friday: Consumer Sentiment


Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized. Sources: Yahoo! Finance, S&P Dow Jones Indices and Treasury.gov. International performance is represented by the MSCI EAFE Index. Corporate bond performance is represented by the SPUSCIG. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.
quote_banner

“Life shrinks or expands in proportion to one’s courage.” – Anais Nin

recipe_banner

Cheddar-Chive Biscuits

Serves 4

Yields 30 biscuits

Ingredients:

6 cups all-purpose flour
¼ cup baking powder
¾ tsp salt
8 oz white cheddar cheese, grated
⅓ cup sliced chives (or green onions)
1½ cup cold salted butter, cut into small pieces, plus more for brushing
2½ cups buttermilk

Directions:

  1. Preheat oven to 425° F.
  2. Combine flour, baking powder, salt, cheese, and chives in a food processor. Pulse until everything is mixed together. Add butter and pulse until mostly incorporated but with a few remaining chunks of butter. Pour in buttermilk while pulsing, stopping just when the dough comes together. (Add a little more buttermilk if dough is overly dry.)
  3. Drop dough onto a baking sheet in ¼ cup portions (bigger if you’d like) and bake for 12-15 minutes, or until golden brown.
  4. Brush with melted butter and sprinkle with more chives.
  5. If you do not have a food processor, cut together the dry ingredients with the butter, then stir in the other ingredients.

Recipe adapted from Pioneer Woman15http://thepioneerwoman.com/cooking/cheddar-chive-drop-biscuits/

tax_banner

Tips to Keep in Mind for Taxpayers Traveling for Charity

During the summer, some taxpayers may travel because of their involvement with a qualified charity. These traveling taxpayers may be able to lower their taxes. Here are some tax tips for taxpayers to use when deducting charity-related travel expenses:

Qualified Charities. For a taxpayer to deduct costs, they must volunteer for a qualified charity.

Out-of-Pocket Expenses. A taxpayer may be able to deduct some of their costs including travel. These out-of-pocket expenses must be necessary while the taxpayer is away from home.

Genuine and Substantial Duty. The charity work the taxpayer is involved with must be real and substantial throughout the trip. The taxpayer can’t deduct expenses if they only have nominal duties or do not have any duties for significant parts of the trip.

Value of Time or Service. A taxpayer can’t deduct the value of their time or services that they give to charity. This includes income lost while the taxpayer serves as an unpaid volunteer for a qualified charity.

Other details may apply, and you can find more information on the IRS website.

* 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 advisor.

Tip courtesy of IRS.gov16https://www.irs.gov/uac/newsroom/tips-to-keep-in-mind-for-taxpayers-traveling-for-charity

golf_banner

Unleash Your Inner Lag

Just what is “lag,” anyway? Lag comes from proper sequencing on the downswing, not from trying to artificially hold onto the angle. Proper force generation and sequencing comes from the ground up and winds “out” into the club. Try the following drill to see if you can get the feel for the proper downswing sequence.

  1. Set up to the ground, no ball, with a 6 or 7-iron. Bend both arms and place the shaft on the outer part of your right upper arm. You may have to let go slightly with your right hand.
  2. Turn your shoulders 90 degrees as if you had made a backswing, but keep the club shaft against your right arm.
  3. Make your downswing and see how long you can keep the shaft touching your right arm—at least until your hands get even with your right leg.

Feel the delayed release and then whipping of the clubhead through impact. You should feel your forearms and club turn over naturally.

Result: Delaying the club release through proper sequencing will help you maximize your distance.

Tip courtesy of Stan Moore | Golf Tips Magazine17https://www.golftipsmag.com/instruction/iron-play/unleash-inner-lag/

healthy_banner

Physical Activity for a Healthy Weight

Regular physical activity is important for good health, and it’s especially important if you’re trying to lose weight or to maintain a healthy weight, which can reduce high blood pressure, reduce risk for type 2 diabetes, heart attack, stroke, and several forms of cancer. It also can reduce risk for osteoporosis and falls, as well as reduce symptoms of depression and anxiety.

Always consult your own physician before starting any exercise regimen, but the Centers for Disease Control says that strong scientific evidence shows physical activity can help you maintain your weight over time. However, the exact amount of physical activity needed to do this is not clear since it varies greatly from person to person. Talk with your doctor about what is right for you.

Find more information on the CDC website.

Tips courtesy of CDC18https://www.cdc.gov/healthyweight/physical_activity/index.html

green_banner

Benefits of Reducing Wasted Food

We may not realize how much food we throw away every day—from spoiled produce and expired meat to uneaten leftovers. In 2014, we threw out 38 million tons of food waste. About 95% of the food we throw away winds up in landfills or combustion facilities. Managing food sustainability and reducing waste can help businesses and consumers save money, as well as provide for those who do not have enough to eat, and conserve resources for future generations. Here are other ways reducing wasted food contributes to greener living:

  • Saves money from buying less food.
  • Reduces methane emissions from landfills and lowers our carbon footprint.
  • Conserves energy and resources, preventing pollution involved in the growing, manufacturing, transporting, and selling of food.
  • Supports your community by providing donated, untouched food that would have otherwise gone to waste to those who might not have a steady food supply.

For more tips on reducing food waste, visit the EPA website.

Tips courtesy of the U.S. Environmental Protection Agency19https://www.epa.gov/recycle/reducing-wasted-food-home#ways

 

 

 

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.

Our Firm

Headquartered in Newport Beach, California, MGO Wealth Advisors, LLC is a very different kind of investment management firm. more >>>

References   [ + ]

1, 3, 6. https://www.cnbc.com/2017/08/11/stocks-rise-for-the-first-time-4-days-after-tame-inflation-data.html
2. https://www.cnbc.com/2017/08/09/as-north-korean-tensions-simmer-heres-how-stocks-reacted-to-past-crises.html?__source=newsletter%7Ceveningbrief
4. http://performance.morningstar.com/Performance/index-c/performance-return.action?t=%21DJI&region=usa&culture=en-UShttp://performance.morningstar.com/Performance/index-c/performance-return.action?t=SPX&region=usa&culture=en-UShttp://performance.morningstar.com/Performance/index-c/performance-return.action?t=@CCO
5. https://www.msci.com/end-of-day-data-search
7. http://wsj-us.econoday.com/byshoweventfull.asp?fid=477397&cust=wsj-us&wiconly=1&lid=0#top
8. http://wsj-us.econoday.com/byshoweventfull.asp?fid=477397&cust=wsj-us&year=2017&lid=0&prev=/byweek.asp#top
9. https://www.cnbc.com/2017/08/11/markets-to-fed-theres-little-chance-of-another-rate-hike-this-year.html
10. http://wsj-us.econoday.com/byshoweventfull.asp?fid=478572&cust=wsj-us&year=2017&lid=0&prev=/byweek.asp#top
11, 14. http://wsj-us.econoday.com/byshoweventarticle.asp?fid=482600&cust=wsj-us&year=2017&lid=0&prev=/byweek.asp#top
12. http://wsj-us.econoday.com/byshoweventfull.asp?fid=477458&cust=wsj-us&year=2017&lid=0&prev=/byweek.asp#top
13. https://www.bloomberg.com/news/articles/2017-08-10/in-debt-we-trust-for-u-s-consumers-with-12-7-trillion-burden
15. http://thepioneerwoman.com/cooking/cheddar-chive-drop-biscuits/
16. https://www.irs.gov/uac/newsroom/tips-to-keep-in-mind-for-taxpayers-traveling-for-charity
17. https://www.golftipsmag.com/instruction/iron-play/unleash-inner-lag/
18. https://www.cdc.gov/healthyweight/physical_activity/index.html
19. https://www.epa.gov/recycle/reducing-wasted-food-home#ways