Stocks Touch Record Highs – June 24, 2019
The S&P 500 hit an all-time peak of 2,964.03, in intraday trading Friday, while improving 2.20% across five market days. The Dow Jones Industrial Average and Nasdaq Composite posted respective, 5-day advances of 2.41% and 3.01%. In addition, the MSCI EAFE benchmark of overseas stocks rose 2.58%.1https://www.cnbc.com/2019/06/21/it-was-a-monumental-week-for-markets-with-major-milestones-in-stocks-bonds-gold-and-oil.html,2https://www.wsj.com/market-data,3https://quotes.wsj.com/index/XX/990300/historical-prices
A White House tweet and the latest monetary policy outlook from the Federal Reserve sent the bulls running. These were the top two financial news items in an eventful week – a week in which the value of West Texas Intermediate crude rose 9.4%, the price of gold went above $1,400 for the first time in six years, and the 10-year Treasury yield fell below 2%. (Treasury yields fall when their prices rise, and vice versa.)4https://www.cnbc.com/2019/06/21/it-was-a-monumental-week-for-markets-with-major-milestones-in-stocks-bonds-gold-and-oil.html
The Fed’s June Policy Statement
The central bank stood pat on interest rates this month, but the expectations of some of its policymakers changed. About half of the 17 Fed officials who have a say in monetary policy now project either one or two quarter-point rate cuts by the end of the year. As recently as March, no Fed official saw grounds for a 2019 cut.5https://www.latimes.com/politics/la-na-pol-trump-fed-interest-rate-policy-20190619-story.html
Markets interpreted this shift as a sign that the Fed might soon ease. While a rate cut is by no means a given, traders now believe that the Fed will make either a quarter-point or half-point cut at its July meeting.6https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html
Last Tuesday’s Market-Moving Tweet
A day earlier, stocks rose after President Trump stated that he and Chinese President Xi Jinping “will be having an extended meeting” at this week’s G-20 summit in Japan.7https://www.cnbc.com/2019/06/18/trump-says-he-and-chinas-xi-spoke-will-have-extended-meeting-next-week-at-g-20.html
Investors were encouraged by this note, sensing a chance for progress in U.S.-China trade talks.
With tensions persisting between Iran and the U.S., investors are keeping a close eye on both commodity prices and stock indices. Economic or geopolitical developments could heavily influence the short-term movement of the markets.
THE WEEK AHEAD:
KEY ECONOMIC DATA
Tuesday: The Census Bureau’s snapshot of May new home buying and the Conference Board’s monthly consumer confidence index.
Thursday: The federal government’s third (“final”) estimate of first-quarter gross domestic product.
Friday: May consumer spending data from the Department of Commerce as well as the final June consumer sentiment index from the University of Michigan, another key gauge of consumer confidence.
Source: Econoday / MarketWatch Calendar, June 21, 2019
The Econoday and MarketWatch economic calendars list 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
THE WEEK AHEAD: COMPANIES REPORTING EARNINGS
Monday: Carnival (CCL)
Tuesday: FedEx (FDX), Micron Technology (MU)
Wednesday: General Mills (GIS), Kraft Heinz (KHC), Paychex (PAYX)
Thursday: Accenture (ACN), Nike (NKE), Walgreens Boots Alliance (WBA)
Friday: Constellation Brands (STZ)
Source: Zacks.com, June 21, 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.
“The best way to predict your future is to create it.”
― Abraham Lincoln
Taxes and Selling Your Home
The IRS provides an exclusion, if you’re a homeowner who qualifies, to exclude all or part of any gain from their income, as a result of the sale of your main home. The ownership and use tests require that during the five-year period ending on the date of the sale, you must have owned and lived in the home for at least two years.
- If there is a gain from the sale of the main home, you may be able to exclude up to $250,000 of the gain from income or $500,000 on a joint return, in most cases. If you can exclude all of the gain, you do not need to report the sale on your tax return.
- A main home that sells for lower than purchased is not deductible.
- There are exceptions for those with a disability, some military, and others.
* 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.gov8https://www.irs.gov/newsroom/tips-to-keep-in-mind-on-income-taxes-and-selling-a-home
Fix Your Flat Takeaway
Many golfers begin their backswing with a poor turn. This can lead to a flat takeaway causing the shoulders to rotate level with the ground.
Remember, your lead shoulder should always move away from the target, but also downward, as the hands stay close to the body. Your body alignment should be in sync, which helps keep the club more vertical on the backswing.
A flat turn, however, usually causes the opposite. Keeping your backswing shallow will cause you to swing down more steeply and cut across the ball, which results in a slice.
Tip adapted from Golf Digest9https://www.golfdigest.com/story/tips-from-one-of-the-tours-best-ball-strikers
Mind What You Eat
Mindful eating allows you to enjoy every bite. Practice it, and you’ll get the nutrition that you need as well as an appreciation for the sight, smell, taste, texture, and the satiety that food can bring. Here are five tips to becoming a mindful eater:
- Breathe before you eat. Breathing slows you down and provides a great transition to being fully aware and present for your meal. Try taking eight to ten deep breaths before you start your meal.
- Check in. After breathing, ask yourself “How hungry am I?” Give it a scale of 1 to 10. What physical sensations are you feeling that indicate your hunger level?
- Get mindful. Based on your hunger choose what to eat, when to eat, and how much to eat.
- Peace out. Practice being calm as you dine. Try setting a place at your table, forgoing a tray in front of the television, and pay attention to your dining experience. Savor your food and slow down.
- Eat what you love. Pay close attention to the attributes of your food – the taste, flavors, textures, and how much enjoyment you get from your favorite foods. If you don’t love it, don’t eat it.
Tip adapted from Mindful10https://www.mindful.org/take-a-mindful-moment-5-simple-practices-for-daily-life/
Recycling Tip: Reduce and Reuse
Properly recycling takes some effort. In general, recyclables need to be separated, cleaned, and sometimes, even deconstructed to be properly recycled (think multi-material juice boxes).
Depending on where you live, your recycling efforts may be all for naught, since much of it can end up in the landfill, anyway. This is because we can no longer rely on about 40% of recyclables being sent to China for processing due to recent policy changes to reduce environmental pollution.11https://www.nbcwashington.com/news/business/US-Struggles-With-What-to-Do-With-Tons-of-Recycled-Material-489971551.html
So, what can we do to help? The first step is to reduce and reuse; it prevents pollution and greenhouse gases. Here are a few ideas on how to reduce and reuse:
- Buy (or trade) used items; thrift stores, swap meets, Craigslist, or consignment shops
- Use products with less packaging or look for recycled packaging
- Repair and reuse; clothing and household items can often be repaired before opting to throw them out
- Borrow or share items instead of buying them; tools, household items, decorations, and kitchen gadgets
Finally, if you have extra, donate. There are folks who may just be looking to reuse what you are reducing.
Tip adapted from EPA.gov12https://www.epa.gov/recycle/reducing-and-reusing-basics
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 [ + ]