Quantcast
Investments | WJBD | South Central Illinois’ News Sports and Weather Station

 
  • Weekly Economic Update

    ­MidAmerica Financial Resources Presents:

     

    WEEKLY ECONOMIC UPDATE

     

     

    WEEKLY QUOTE

                 

    “The man who says he is willing to meet you halfway is usually a poor judge of distance.”

        

    - Laurence J. Peter

          

      

    WEEKLY TIP

                 

    Just married? About to marry? Develop a plan to save jointly for your financial goals. If you both save for them, they may be attained more quickly.

         

      

    WEEKLY RIDDLE

               

    I am soft and seldom upright. I lose a head in the morning, but I get it back at night. What am I?

      

     

    Last week’s riddle:

    You contact it in the street, and lie above it in the night. It may shake as if it is angry, but it will never bite. What is it?

         

    Last week’s answer:

    The ground.

     

     

     

     

    September 19, 2016

      

    RETAIL SALES DECREASE SLIGHTLY

    Shoppers bought 0.3% less goods and services in August, according to the latest monthly report from the Department of Commerce – but minus auto sales, the decline was just 0.1%. Retail sales were still up 1.9% from year-ago levels, with online sales rising 10.9% in 12 months.1

        

    CONSUMER COSTS RISE IN AUGUST

    The Consumer Price Index rose 0.2% after a flat July, with the core CPI up 0.3%. Economists surveyed by MarketWatch had expected the headline and core CPI to respectively advance 0.1% and 0.2%. August brought no change whatsoever in the Producer Price Index, which had fallen 0.4% a month earlier. Speaking of production, the Federal Reserve announced a 0.4% dip in industrial output for August, a marked difference from July’s 0.6% gain.2

        

    HOUSEHOLD SENTIMENT INDEX SHOWS NO CHANGE

    Friday, the University of Michigan’s consumer sentiment index displayed an initial September reading of 89.8, duplicating its final August mark. In September 2015, the index was at 87.2.3

      

    ROLLERCOASTER WEEK LEAVES STOCKS HIGHER

    Investors hardly bided their time waiting for next week’s Federal Reserve interest rate decision – last week was full of dramatic ups and downs. Friday, the S&P 500 closed at 2,139.16, gaining 0.53% in five days. Rising 0.21% for the week, the Dow industrials settled at 18,123.80 Friday; the Nasdaq advanced 2.31% last week to 5,244.57. Gasoline futures jumped 7.4% on the NYMEX during the week, while oil prices fell 6.2%; crude settled Friday at $43.03.4,5

       

    THIS WEEK: Nothing major is scheduled for Monday. Data on August housing starts and building permits will be revealed Tuesday, along with earnings from Adobe Systems, Carnival, FedEx, KB Home, and Lennar. Wednesday, the Federal Reserve makes its latest policy statement, with Fed chair Janet Yellen holding a subsequent press conference; in addition, Wall Street receives earnings news from Bed Bath & Beyond, CarMax, General Mills, Jabil Circuit, Red Hat, and Steelcase. Earnings from AutoZone and Rite Aid arrive Thursday, along with a new initial jobless claims report. Friday, Finish Line announces quarterly results.

     

    % CHANGE

    Y-T-D

    1-YR CHG

    5-YR AVG

    10-YR AVG

    DJIA

    4.01

    8.27

    11.49

    5.68

    NASDAQ

    4.74

    7.27

    20.00

    13.46

    S&P 500

    4.66

    7.21

    15.18

    6.21

    REAL YIELD

    9/16 RATE

    1 YR AGO

    5 YRS AGO

    10 YRS AGO

    10 YR TIPS

    0.19%

    0.73%

    0.13%

    2.38%

     


    Sources: wsj.com, bigcharts.com, treasury.gov - 9/16/164,6,7,8

    Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

     

     

    Please feel free to forward this article to family, friends or colleagues.
    If you would like us to add them to our distribution list, please reply with their address.
    We will contact them first and request their permission to add them to our list.

     

     

    Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPC, a Registered Investment Adviser.
    MidAmerica Financial Resources and Malan Financial Group are separate and unrelated companies to NPC.

     

    This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world's largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

     

    Citations.

    1 - tinyurl.com/gwvdd2w [9/15/16]

    2 - marketwatch.com/economy-politics/calendars/economic [9/16/16]

    3 - sca.isr.umich.edu [9/16/16]

    4 - markets.wsj.com/us [9/16/16]

    5 - marketwatch.com/story/oil-prices-fall-market-braces-for-nigeria-libya-oil-2016-09-16 [9/16/16]

    6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F16%2F15&x=0&y=0 [9/16/16]

    6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F16%2F15&x=0&y=0 [9/16/16]

    6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F16%2F15&x=0&y=0 [9/16/16]

    6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F16%2F11&x=0&y=0 [9/16/16]

    6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F16%2F11&x=0&y=0 [9/16/16]

    6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F16%2F11&x=0&y=0 [9/16/16]

    6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F15%2F06&x=0&y=0 [9/16/16]

    6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F15%2F06&x=0&y=0 [9/16/16]

    6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F15%2F06&x=0&y=0 [9/16/16]

    7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/16/16]

    8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/16/16]

     

     

  • Characteristics of the Millionaires Next Door
    The habits and values of wealthy Americans.

      

    Provided by MidAmerica Financial Resources

     

    Just how many millionaires does America have? By the latest estimation of Spectrem Group, a research firm studying affluent and high net worth investors, it has more than ever before. In 2015, the U.S. had 10.4 million households with assets of $1 million or greater, aside from their homes. That represents a 3% increase from 2014. Impressively, 1.2 million of those households were worth between $5 million and $25 million.1

     

    How did these people become rich? Did they come from money? In most cases, the answer is no. The 2016 edition of U.S. Trust’s Insights on Wealth and Worth survey shares characteristics of nearly 700 Americans with $3 million or more in investable assets. Seventy-seven percent of the survey respondents reported growing up in middle class or working class households. A slight majority (52%) said that the bulk of their wealth came from earned income; 32% credited investing.2

     

    It appears most of these individuals benefited not from silver spoons in their mouths, but from taking a particular outlook on life and following sound financial principles. U.S. Trust asked these multi-millionaires to state the three values that were most emphasized to them by their parents. The top answers? Educational achievement, financial discipline, and the importance of working.2

     

    Is education the first step toward wealth? There may be a strong correlation. Ninety percent of those polled in a recent BMO Private Bank millionaire survey said that they had earned college degrees. (The National Center for Education Statistics notes that in 2015, only 36% of Americans aged 25-29 were college graduates.)3

          

    Interestingly, a lasting marriage may also help. Studies from Ohio State University and the National Bureau of Economic Research (NBER) both conclude that married people end up economically better off by the time they retire than singles who have never married. In fact, NBER finds that, on average, married people will have ten times the assets of single people by the start of retirement. Divorce, on the other hand, often wrecks finances. The OSU study found that the average divorced person loses 77% of the wealth he or she had while married.3

         

    Most of the multi-millionaires in the U.S. Trust study got off to an early start. On average, they began saving money at 14; held their first job at 15; and invested in equities by the time they were 25.2

      

    Most of them have invested conventionally. Eighty-three percent of those polled by U.S. Trust credited buy-and-hold investment strategies for part of their wealth. Eighty-nine percent reported that equities and debt instruments had generated most of their portfolio gains.2

        

    Many of these millionaires keep a close eye on taxes & risk. Fifty-five percent agreed with the statement that it is “more important to minimize the impact of taxes when making investment decisions than it is to pursue the highest possible returns regardless of the tax consequences.” In a similar vein, 60% said that lessening their risk exposure is important, even if they end up with less yield as a consequence.2

            

    Are these people mostly entrepreneurs? No. The aforementioned Spectrem Group survey found that millionaires and multi-millionaires come from all kinds of career fields. The most commonly cited occupations? Manager (16%), professional (15%), and educator (13%).4 

     

    Here is one last detail that is certainly worth noting. According to Spectrem Group, 78% of millionaires turn to financial professionals for help managing their investments.4

     

    MidAmerica Financial Resources may be reached at 618.548.4777 or greg.malan@natplan.com. www.mid-america.us

      

    This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

      

    Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPC, a Registered Investment Adviser.
    MidAmerica Financial Resources and Malan Financial Group are separate and unrelated companies to NPC.

     

      

    Citations.

    1 - cnbc.com/2016/03/07/record-number-of-millionaires-living-in-the-us.html [3/7/16]

    2 - forbes.com/sites/maggiemcgrath/2016/05/23/the-6-most-important-wealth-building-lessons-from-multi-millionaires/ [5/23/16]

    3 - businessinsider.com/ap-liz-weston-secrets-of-next-door-millionaires-2016-8 [8/22/16]

    4 - cnbc.com/2016/05/05/are-you-a-millionaire-in-the-making.html [5/5/16]